This rate is set by the Maryland Consumer Protection Act, which was enacted in 1977. The Act states that "no person may contract for or receive a greater rate of interest than the maximum rate allowed under this section". The maximum rate is calculated using a formula that takes into account the Federal Reserve's discount rate and the rate of inflation.
Maryland also has a law that limits the amount of interest that can be charged on a car loan to 18% per year. This law is known as the Maryland Credit Act, and it was enacted in 1995. The Credit Act applies to all loans made by Maryland-based lenders, regardless of the borrower's location.
If you are considering taking out a car loan in Maryland, it is important to be aware of these interest rate limits. You should also compare interest rates from multiple lenders before you sign a loan agreement.
