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On February 4, 2026, the Maryland Senate passed a new banking law designed to protect consumers and improve transparency in the banking industry. The Consumer Protection in Banking Act, as it is called, received bipartisan support and is expected to have a significant impact on how banks operate in the state.One of the key provisions of the new law is the requirement for banks to provide clearer and more upfront information about fees and charges to their customers. This includes disclosing all fees associated with various banking services, such as overdraft fees, ATM fees, and account maintenance fees. Banks will also be required to provide regular updates to customers on any changes to these fees.Additionally, the Consumer Protection in Banking Act introduces stricter regulations on the processing of transactions, particularly when it comes to overdraft fees. Under the new law, banks will be prohibited from reordering transactions in a way that maximizes overdraft fees for consumers. This practice, known as "transaction resequencing," has long been criticized for unfairly penalizing customers who may be struggling financially.The law also includes provisions aimed at tackling predatory lending practices, such as payday loans with exorbitant interest rates. Lenders will now be required to conduct more thorough assessments of a borrower's ability to repay before issuing a loan. This is intended to prevent individuals from taking on debt that they cannot afford to repay, ultimately leading to a cycle of debt and financial hardship.Maryland Senator Jane Doe, who sponsored the bill, hailed its passage as a victory for consumers across the state. "This law is a major step forward in ensuring that Maryland residents are not taken advantage of by unscrupulous banking practices," she said. "By improving transparency and accountability in the banking industry, we are empowering consumers to make more informed decisions about their finances."The Consumer Protection in Banking Act is set to go into effect on July 1, 2026. Banking institutions in Maryland will have until this date to update their policies and procedures to comply with the new law. Violations of the law could result in fines and other penalties for non-compliant banks.Overall, the passage of the Consumer Protection in Banking Act represents a significant win for consumer rights in Maryland and sets a precedent for other states to follow suit in enacting similar legislation to protect consumers in the banking industry.