What a title loan costs — before Maryland’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Maryland
- Rate cap
- Maryland Consumer Loan Law caps interest at about 2.75%/month (~33% APR) on loans up to $2,000 and 2%/month (~24% APR) on the portion from $2,000–$6,000 (Md. Code, Com. Law 12-306).
- Key law
- Maryland Consumer Loan Law (MCLL), Md. Code Ann., Commercial Law Title 12 and Financial Institutions Title 11.
- Enforcement
- The Commissioner of Financial Regulation issued a 2017 advisory stating title-loan providers are subject to its licensing and enforcement authority, and that loans are covered regardless of what the contract is called.
Maryland’s regulator formally ruled (Aug. 30, 2017 advisory) that vehicle title loans of $6,000 or less are consumer loans subject to the MCLL and all its interest-rate and fee caps.
What it means for a Maryland borrower
High-APR single-payment car title loans are not legally available in Maryland. Any title loan must obey the roughly 24–33% consumer-loan rate cap and use a licensed lender, which makes the classic 200–300% APR product non-viable. A Maryland title loan at triple-digit APR is illegal.
If you already have a title loan in Maryland
A loan that violates Maryland’s ban may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check whether the lender is licensed in Maryland — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Maryland attorney general and the CFPB.
- Ask whether the balance is even collectable under Maryland law before you pay a collector.
Cheaper first — try these before a title loan in Maryland
Title Loans and tribal lenders in Maryland
Many online lenders that market title loans to Maryland residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Maryland residents and how state law applies to them, see the Maryland tribal-lending page.
Tribal loans in Maryland →Frequently asked questions
Are title loans legal in Maryland?
In Maryland, a high-cost single-payment title loan is not legally viable. The state’s rate cap or an outright ban makes a ~300% APR title loan void or unavailable, so licensed title lenders do not operate — and a lender that lends anyway is on weak legal footing.
What is the maximum title loan rate in Maryland?
Maryland Consumer Loan Law caps interest at about 2.75%/month (~33% APR) on loans up to $2,000 and 2%/month (~24% APR) on the portion from $2,000–$6,000 (Md. Code, Com. Law 12-306).
What can I do about a title loan I already have in Maryland?
Because Maryland effectively bans high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Maryland — many high-cost online lenders are not. This is general information, not legal advice.