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Be Careful with Online Cash Loans in Maryland

Maryland regulators recently clamped down on an online cash lender based and licensed in South Dakota who approved cash loans for Maryland residents. Under Maryland law, lenders of any kind are not allowed to charge more than a 33% interest rate on short-term loans up to $1,000. The South Dakota cash lender charged Maryland residents over 1,800% in annual interest on their cash advance loans online.

Online cash lending has made small cash loans accessible to customers in states where lending laws are too restrictive to allow easy access to cash loans nearby. Unless your state bans all forms of cash lending, you can usually go online, submit an application to any lender, and get approved for a cash loan within seconds. The trouble comes when your lender charges their usual interest rate instead of adhering to laws in your home state, as is the case with the lender in South Dakota.

It’s important to be aware of the cash advance laws in your state so that you and your lender don’t get in trouble if you borrow a cash loan online. Several states cap interest rates, limit or ban roll overs, and regulate the length of time you can borrow short-term cash for. Familiarize yourself with the laws in your state so you can search for an online lender who meets these requirements. If your state caps interest rates, search online for “low interest cash loans.” If your state requires small loans to last a minimum of 30 or 60 days, search for longer-term cash loans within that time frame. With so many lenders across the country offering their services online, it’s not too hard to find a lender who falls within your state’s guidelines. Be aware, however, that if your state bans all forms of cash lending, you probably won’t be allowed to borrow a cash loan online from an out-of-state lender. Look for other alternative lending sources instead.

Stay smart and informed about cash loans in your state to keep your borrowing experience safe.

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