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Debt Laws | Federal
Laws | Consumer Protection
State Laws
Maryland Collection Agencies, Licenses
Business Regulations Article
Title 7. Collection Agencies
Subtitle 3. Licenses
(a) Except as otherwise provided in this title, a person must have a license whenever the person does business as a collection agency in the State.
(b) This section does not apply to:
(1) a regular employee of a creditor while the employee is acting under the general direction and control of the creditor to collect a consumer claim that the creditor owns; or
(2) a regular employee of a licensed collection agency while the employee is acting within the scope of employment.
(a) An applicant for a license shall:
(1) submit to the Board an application on the form that the Board provides; and
(2) pay to the Board an application fee of $400.
(b) An application shall be made under oath.
(c) If an applicant wishes to do business as a collection agency at more than 1 place, the applicant shall submit a separate application and pay a separate application fee for each place.
(d) An application fee is nonrefundable.
(e) Before a license expires, the licensee periodically may renew the license for additional 2-year terms, if the licensee:
(1) otherwise is entitled to be licensed;
(2) pays to the Board a renewal fee of $400;
(3) submits to the Board a renewal application on a form required by the Board; and
(4) files with the Board a bond or bond continuation certificate as required under § 7-304 of this subtitle.
(a) Within 60 days after an applicant submits an application for a license and pays the application fee, the Board shall approve or deny the application.
(b) Subject to the hearing provisions of § 7-309 of this subtitle, the Board may deny a license to an applicant if:
(1) the applicant fraudulently or deceptively obtains or attempts to obtain a license for the applicant or for another person;
(2) the applicant fraudulently uses a license;
(3) the applicant:
(i) has had a license revoked; or
(ii) is responsible for an act or omission that resulted in revocation of a license;
(4) a person who, when the application is submitted, is an agent, director, employee, member, officer, owner, partner, or spouse of the applicant:
(i) has had a license revoked; or
(ii) is responsible for an act or omission that resulted in revocation of a license; or
(5) otherwise fails to meet the requirements for licensure.
(a) (1) An applicant for a license shall execute a surety bond for the benefit of any member of the public who has a loss or other damage as a result of a violation of this title or the Maryland Consumer Debt Collection Act by the applicant or an agent or employee of the applicant.
(2) The surety bond shall be:
(i) in a form that the Board approves;
(ii) with a surety that the Board approves; and
(iii) in the amount of $5,000.
(3) The total liability of a surety on a bond under this section may not exceed the amount of the bond, regardless of the number or amount of claims against the bond.
(4) If the amount of claims against a bond exceeds the amount of the bond, the surety:
(i) shall pay the amount of the bond to the Board for distribution to claimants; and
(ii) then is relieved of liability under the bond.
(b) The Board shall issue a license to each applicant who meets the requirements of this subtitle.
(a) A license authorizes the licensee to do business as a collection agency at only 1 place of business.
(b) A licensee may hold more than 1 license under this title.
(a) A license authorizes the licensee to do business as a collection agency at only 1 place of business.
(b) A licensee may hold more than 1 license under this title.
(a) (1) A license issued on or before September 30, 1997, expires on December 31 of the year in which it was issued.
(2) A license issued on or after October 1, 1997, expires on December 31 in each odd-numbered year after December 31, 1997.
(b) The Secretary may determine that licenses issued under this subtitle shall expire on a staggered basis.
(a) A licensee may surrender a license by giving the Board written notice that the license is surrendered.
(b) Surrender of a license does not affect:
(1) the civil or criminal liability of the licensee for an act committed before surrender of the license; or
(2) the obligation of a claim that the licensee lawfully acquired before the surrender.
(a) Subject to the hearing provisions of § 7-309 of this subtitle, the Board may reprimand a licensee or suspend or revoke a license if the licensee:
(1) fraudulently or deceptively obtains or attempts to obtain a license for the licensee or for another person;
(2) fraudulently or deceptively uses a license;
(3) knowingly or negligently violates the Maryland Consumer Debt Collection Act; or
(4) fails to comply with a lawful order that the Board passes under this title.
(b) If the Board finds that a ground for suspension or revocation of a license applies to more than 1 place of business that the licensee operates, the Board may act against:
(1) each license of the licensee; or
(2) only the licenses to which the ground applies.
(a) (1) Except as otherwise provided in § 10-226 of the State Government Article, before the Board takes any final action under § 7-308 of this subtitle, or under § 7-205 of this title, it shall give the person against whom the action is contemplated an opportunity for a hearing before the Board.
(2) A hearing shall be held at a time and place reasonably convenient to the parties.
(b) The Board shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.
(c) The Board may administer oaths in connection with a proceeding under this section.
(d) The Board may issue a subpoena for the attendance of a witness to testify at a hearing under this section, but not for investigative purposes.
(e) If, after due notice, the person against whom the action is contemplated does not appear, nevertheless the Board may hear and determine the matter.
(f) The Board may enforce a lawful order issued under this title by filing an action to enforce the order in the circuit court for the county:
(1) where the licensee which is the subject of the order has its principal place of business; or
(2) if the licensee has no principal place of business in the State, where the consumer aggrieved by the violation resides.
A party to a proceeding before the Board who is aggrieved by a final decision of the Board in a contested case, as defined in § 10-202 of the State Government Article, may take an appeal as allowed in §§ 10-222 and 10-223 of the State Government Article.
The suspension or revocation of a license does not affect the obligation of a claim that the licensee lawfully acquired before the suspension or revocation.
MD Maryland Official State Statutes
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