Maryland HB1606 limits interest rates for active service members to 6% per year on unpaid principal balances.

Maryland HB1606 amends credit regulation laws to cap the interest rate at 6% per year for active service members on unpaid principal balances. This applies to obligations held jointly by an active service member and their spouse. The bill requires creditors to provide written notice of the intent to charge interest above the limit and mandates service members to submit documentation of their active duty status. If a court finds that the service member's ability to pay is not materially affected by their assignment, it may grant relief from the interest rate limitation.

Maryland HB1606 limits interest rates for active service members to 6% per year on unpaid principal balances.

Maryland HB1606 amends credit regulation laws to cap the interest rate at 6% per year for active service members on unpaid principal balances. This applies to obligations held jointly by an active service member and their spouse. The bill requires creditors to provide written notice of the intent to charge interest above the limit and mandates service members to submit documentation of their active duty status. If a court finds that the service member's ability to pay is not materially affected by their assignment, it may grant relief from the interest rate limitation.