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Maryland Collection Agencies

Business Regulations Article
Title 7. Collection Agencies
Subtitle 1. Definitions; General Provisions

§ 7-101.

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

(b) "Board" means the State Collection Agency Licensing Board.

(c) "Collection agency" means a person who:

(1) engages directly or indirectly in the business of collecting for, or soliciting from another, a consumer claim;

(2) in collection of a consumer claim by its owner, uses a name or other artifice that indicates that another party is attempting to collect the consumer claim;

(3) gives, sells, attempts to give or sell to another, or uses, for collection of a consumer claim, a series or system of forms or letters that indicates directly or indirectly that a person other than the owner is asserting the consumer claim; or

(4) employs the services of an individual or business to solicit or sell a collection system to be used for collection of a consumer claim.

(d) "Commissioner" means the Commissioner of Financial Regulation.

(e) "Consumer claim" means a claim that:

(1) is for money owed or said to be owed by a resident of the State; and

(2) arises from a transaction in which, for a family, household, or personal purpose, the resident sought or got credit, money, personal property, real property, or services.

(f) "License" means a license issued by the Board to do business as a collection agency.

(g) "Licensed collection agency" means a person who is licensed by the Board to do business as a collection agency.

§ 7-102.

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

(2) "Common ownership" means direct or indirect ownership of more than 50% of a person.

(3) "Principal business" means a business activity of a person that comprises more than 50% of the total business activities of the person.

(b) This title does not apply to:

(1) a bank;

(2) a federal or State credit union;

(3) a mortgage lender;

(4) a person acting under an order of a court of competent jurisdiction;

(5) a licensed real estate broker, or an individual acting on behalf of the real estate broker, in the collection of rent or allied charges for property;

(6) a savings and loan association;

(7) a title company as to its escrow business;

(8) a trust company;

(9) a lawyer who is collecting a debt for a client, unless the lawyer has an employee who:

(i) is not a lawyer; and

(ii) is engaged primarily to solicit debts for collection or primarily makes contact with a debtor to collect or adjust a debt through a procedure identified with the operation of a collection agency; or

(10) a person who is collecting a debt for another person if:

(i) both persons are related by common ownership;

(ii) the person who is collecting a debt does so only for those persons to whom it is related by common ownership;

(iii) the principal business of the person who is collecting a debt is not the collection of debts; and

(iv) before collecting a debt, the person files with the Board:

1. the correct name of the person;

2. an address and telephone number of a contact person; and

3. the name of the person's resident agent.

§ 7-103.

(a) This title does not prohibit the State Division of Consumer Protection or a local consumer protection unit from enforcing the Maryland Consumer Debt Collection Act or local law.

(b) A local or State unit may not bring an action against a licensed collection agency for a specific violation or complaint for which an action against the licensed collection agency has been brought by:

(1) the Board under this title; or

(2) the State Division of Consumer Protection or a local consumer protection unit under the Maryland Consumer Debt Collection Act or under local law.

§ 7-104.

Only the State may require a person to hold a license or to pay a fee to do business as a collection agency.

MD Maryland Official State Statutes

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