§ 12-303

(a) (1) This subtitle applies to a loan of $25,000 or less made for personal, family, or household purposes.

(2) Except as provided in paragraph (3) of this subsection, this subtitle applies regardless of:

(i) Whether the transaction is or purports to be made under this subtitle;

(ii) Whether the transaction is or purports to be an installment loan;

(iii) The duration of the repayment period;

(iv) Whether the transaction is or purports to be nonrecourse or contingent; and

(v) Whether the transaction purports to be the purchase of wages, pensions, governmental benefits, or other similar future payment streams.

(3) This subtitle does not apply to:

(i) A plan or loan for which a written election has been made under Subtitle 1, Subtitle 4, Subtitle 9, or Subtitle 10 of this title;

(ii) A loan made by an individual provided the individual:

1. Does not make more than three loans in a calendar year; and

2. Does not engage in the business of making loans; or

(iii) A loan between an employer and an employee.

(b) A lender may not make a loan subject to this subtitle unless the loan is in an original amount or value which does not exceed $25,000.

(c) (1) The purpose of this subsection is to prevent evasion of the provisions of this subtitle by means of a purchase or assignment of wages.

(2) For the purposes of this subtitle:

(i) The payment of $25,000 or less in money, credit, goods, or things in action as consideration for any sale, assignment, or order for the payment of wages, whether earned or to be earned, is considered a loan of money secured by the sale, assignment, or order for payment of wages; and

(ii) The amount by which the wages exceed the consideration paid for them is considered interest or charges on the loan from the date of the payment to the date the wages are payable.

(3) The transaction described in this subsection is governed by and subject to the provisions of this subtitle.

(d) This subtitle applies but is not limited to a lender who:

(1) As security for a loan, use, or forbearance of money, goods, or things in action or for any loan, use, or sale of credit, whether or not the transaction is or purports to be made under this subtitle, makes a pretended purchase of property from any person and permits the owner or pledgor to retain possession of the property; or

(2) By any device or pretense of charging for his services or otherwise, seeks to obtain any interest, charges, discount, or like consideration.

(e) (1) A lender who lends or contracts to lend an amount which exceeds $25,000 may not directly or indirectly contract for, charge, or receive any interest, fee, or other charge in excess of that which the lender would be permitted to charge if the lender were not authorized to make loans under this subtitle.

(2) The provisions of this subsection apply to any debt in excess of $25,000 which is directly or contingently owed or contracted to be so owed by any person jointly or severally:

(i) Whether as a borrower, an endorser, guarantor, or surety for a borrower, or otherwise; and

(ii) Whether the debt is part of a single transaction or the aggregate of more than one transaction.