1. (a)

   1. (1) In this section the following words have the meanings indicated.

   2. (2)

      1. (i) “Covered loan” means a loan subject to § 12-103(a)(3) or (c) of this subtitle, made for personal, family, or household purposes, regardless of whether the loan is or purports to be made under this subtitle.

      2. (ii) “Covered loan” does not include:

         1. 1. A loan or an advance of money or credit subject to Subtitle 3 of this title, unless a written election is made under § 12-101.1 of this subtitle;
         2. 2. A plan or loan for which a written election has been made under Subtitle 3, Subtitle 4, Subtitle 9, or Subtitle 10 of this title; or
         3. 3. An installment sale agreement as defined in § 12-601 of this title.

   3. (3) “Unlicensed person” means a person who is not:

      1. (i) Licensed in the State to make a covered loan; and
      2. (ii) Exempt from licensing in the State.
2. (b) This section applies to a covered loan made to any person.

3. (c)

   1. (1) An unlicensed person may not make a covered loan.
   2. (2) A person may not make a covered loan if the person directly or indirectly contracts for, charges, or receives a rate of interest, charge, discount, or other consideration that is greater than the amount authorized under State law.
   3. (3) A person may not make a covered loan that violates the federal Military Lending Act.

4. (d)

   1. (1) A covered loan made by an unlicensed person is void and unenforceable.

   2. (2)

      1. (i) Except as provided in subparagraph (ii) of this paragraph, a covered loan is void and unenforceable if a person contracts for a covered loan that has a rate of interest, charge, discount, or other consideration greater than the amount authorized under State law.

      2. (ii) A covered loan is not void and unenforceable if:

         1. 1. A clerical error or mistake resulted in the rate of interest, charge, discount, or other consideration being greater than the amount authorized under State law; and
         2. 2. A person corrects the error or mistake before the first payment is due under the loan.
   3. (3) A covered loan that violates the federal Military Lending Act is void and unenforceable.

   4. (4) With respect to a loan that is void and unenforceable under this section, a person may not:

      1. (i) Collect or attempt to collect, directly or indirectly, any amount from the borrower;
      2. (ii) Enforce or attempt to enforce the contract against any property securing the loan; or
      3. (iii) Sell, assign, or otherwise transfer the loan to another person.

Added by Acts 2018, c. 732, § 2, eff. Jan. 1, 2019; Acts 2018, c. 790, § 1, eff. Jan. 1, 2019.