MD HB1606

Caps interest rates at 6% per year on loans and financing arrangements held by active duty service members or jointly with their spouses

Requires interest charges above 6% to be forgiven when a service member is called to active duty during a loan's repayment term, with monthly payments recalculated at the reduced rate

Service members or spouses must notify creditors within 180 days after release from active duty, providing written notice and copies of military orders

Courts may grant creditors relief from the 6% cap if they find the service member's ability to pay higher interest was not materially affected by active duty assignment

Takes effect July 1, 2026