Maryland

The relevant statutes are the Credit Grantor Closed End Credit Provisions, Md. Comm. Law Code Ann. §§12-1001 et seq. (“MD-CLEC”) and the Retail Installment Sales Act, Md. Comm. Law Code Ann. §§12-601 et seq. (MD-RISA). Creditors may elect to extend credit under either statute.

For MD-CLEC:

A. Actions creditor may take: MD-CLEC §12-1005(b)(3), (d) - Creditor may charge for reimbursement of reasonable expenses incurred in good faith in connection with the loan, including insurance premiums protecting creditor against buyer's default or other credit loss. For a consumer contract, the charge must be permitted and authorized in the contract and for insurance coverage permitted under MD-CLEC.

B. Notices required: No express statutory provision.

C. Charges permitted: MD-CLEC §12-1005(d)(2) - For consumer contracts, the charge must be actual and verifiable, and not retained by creditor.

D. Finance charge allowed on creditor's payment: No express statutory provision.

For MD-RISA:

A. Actions creditor may take: MD-RISA §12-614(b)(3) - If no charge for insurance was made in the contract, creditor may charge buyer for permitted insurance premiums.

B. Notices required: No express statutory provision.

C. Charges permitted: No express statutory provision.

D. Finance charge allowed on creditor's payment: No express statutory provision.

Click here to view relevant Maryland Code and Regulations.