Credit Regulation - Maximum Interest Rate for Active Service Members (Service Members Civil Relief Act)

HB 1606 limits the maximum annual interest rate creditors can charge on loans held by active-duty service members or jointly with their spouses to 6%. It requires service members to provide military orders and written notice to creditors within 180 days of leaving active duty to qualify for the rate cap. The bill forgives interest above 6% and recalculates payments during active duty, while allowing courts to override the cap if a service member’s ability to pay isn’t affected by deployment. This amendment to Maryland’s Commercial Law (Sections 12-102.1 and 12-107) takes effect July 1, 2026.