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

(2)    (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.

(ii)    “Covered loan” does not include:

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.    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.    An installment sale agreement as defined in § 12–601 of this title.

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

(i)    Licensed in the State to make a covered loan; and

(ii)    Exempt from licensing in the State.

(b)    This section applies to a covered loan made to any person.

(c)    (1)    An unlicensed person may not make a covered loan.

(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)    A person may not make a covered loan that violates the federal Military Lending Act.

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

(2)    (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.

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

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.    A person corrects the error or mistake before the first payment is due under the loan.

(3)    A covered loan that violates the federal Military Lending Act is void and unenforceable.

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

(i)    Collect or attempt to collect, directly or indirectly, any amount from the borrower;

(ii)    Enforce or attempt to enforce the contract against any property securing the loan; or

(iii)    Sell, assign, or otherwise transfer the loan to another person.