Bill > SB317

This bill, titled the Credit Regulation - Maximum Interest Rate for Active Service Members (Service Members Civil Relief Act), aims to protect active duty military personnel and their spouses by capping the annual interest rate on certain financial obligations, referred to as "obligations" (which include loans or financing arrangements), at a maximum of 6% simple interest. This limit applies to obligations held by an active service member or jointly with their spouse, and if a service member is called to active duty during the repayment period of an obligation, any interest exceeding 6% will be forgiven, and payments will be recalculated at the reduced rate. To benefit from this protection, the service member or their spouse must notify the creditor in writing and provide documentation of their active duty status within 180 days after their service ends. However, a court can allow a creditor to bypass this interest rate limit if it finds that the service member's or their spouse's ability to pay higher interest rates is not significantly impacted by their active duty status. This legislation is set to take effect on July 1, 2026.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0317?ys=2026RS