WeVote
Log In

Bill

Bill

SB 317

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

2026 Regular Session Introduced by Ben Brooks and 2 co-sponsors

Maryland SB 317 caps interest rates on credit for active service members under the Service Members Civil Relief Act, aiming to prevent predatory lending practices targeting military personnel.

Hearing 2/12 at 1:00 p.m.
0
WeVote Research Nonpartisan
Bill Summary · SB 317

Legislative bill overview

SB 317 proposes to establish a maximum interest rate cap for credit extended to active service members in Maryland, operating under the framework of the federal Service Members Civil Relief Act (SCRA). The bill would impose state-level restrictions on lending rates for military personnel, potentially creating stricter protections than those already provided under existing federal law.

Why is this important

Active service members are often targeted by predatory lending due to factors like frequent relocation, structured income, and limited access to traditional banking. Interest rate caps can protect vulnerable military families from debt cycles, but implementation requires balancing consumer protection with lender availability and competitive credit markets in the state.

Potential points of contention

  • Scope definition: Unclear whether the cap applies only to SCRA-covered servicemembers or all active military, and which credit types (payday loans, auto loans, credit cards) would be affected
  • Rate-setting mechanism: Determining what the actual cap should be—too restrictive may reduce credit availability; too high may provide insufficient protection
  • Federal preemption concerns: Potential conflicts with existing federal SCRA protections and whether Maryland's law would create redundancy or meaningful additional safeguards
  • Lender impact: May incentivize creditors to avoid the military market entirely, potentially pushing service members toward less regulated lending alternatives

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.