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Debt Laws | Federal
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State Laws
Maryland Credit Reporting Agencies
Commercial Law Article
Title 14. Miscellaneous Consumer Protection Provisions
Subtitle 12. Consumer Credit Reporting Agencies
(a) In this subtitle the following words have the meanings indicated.
(b) "Commissioner" means the Commissioner of Financial Regulation of the Department of Labor, Licensing, and Regulation.
(c) "Consumer" means an individual.
(d) (1) "Consumer report" means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for:
(i) Credit or insurance to be used primarily for personal, family, or household purposes;
(ii) Employment purposes; or
(iii) Other purposes authorized under § 14-1202 of this subtitle.
(2) The term does not include:
(i) Any report containing information solely as to transactions or experiences between the consumer and the person making the report;
(ii) Any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or
(iii) Any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys his decision with respect to the request, if the third party advises the consumer of the name and address of the person to whom the request was made and the person makes the disclosures to the consumer required under § 14-1212 of this subtitle.
(e) (1) "Consumer reporting agency" means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of commerce for the purpose of preparing or furnishing consumer reports.
(2) "Consumer reporting agency" does not include:
(i) A person licensed as a private detective agency or certified as a private detective under the Maryland Private Detectives Act; or
(ii) A person who assembles and exchanges consumer credit information with an affiliated person or a person who is owned or controlled by the same entity, provided that, in the event of an adverse credit decision against a consumer based on that information, the entity making the decision shall comply with the notice requirements of § 14-1212(b) of this subtitle.
(f) "Employment purposes" when used in connection with a consumer report means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee.
(g) "File", when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.
(h) "Investigative consumer report" means a consumer report or portion of it in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any items of information. However, the information does not include specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when the information was obtained directly from a creditor of the consumer or from the consumer.
(i) "Medical information" means information or records obtained, with the consent of the individual to whom it relates, from licensed physicians or medical practitioners, hospitals, clinics, or other medical or medically related facilities.
(j) "Person" includes an individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, two or more persons having a joint or common interest, and any other legal or commercial entity.
(a) Subject to subsection (b) of this section and § 14-1205 of this subtitle, a consumer reporting agency may furnish a consumer report under the following circumstances and no other:
(1) In response to the order of a court having jurisdiction to issue the order;
(2) In accordance with the written instructions of the consumer to whom it relates; or
(3) To a person which the agency has reason to believe:
(i) Intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer;
(ii) Intends to use the information for employment purposes;
(iii) Intends to use the information in connection with the underwriting of insurance involving the consumer;
(iv) Intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or
(v) Otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer.
(b) If the consumer reporting agency receives written notice from the consumer restricting the sale or other transfer of information in the consumer's file, the consumer reporting agency may not sell, offer to sell, or furnish information in the consumer's file to:
(1) A mail-service organization;
(2) A marketing firm; or
(3) Any other similar organization that obtains information about a consumer for marketing purposes.
(a) Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:
(1) Bankruptcies which, from date of adjudication of the most recent bankruptcy, antedate the report by more than 10 years;
(2) Suits and judgments which, from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period;
(3) Paid tax liens which, from date of payment, antedate the report by more than seven years;
(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years;
(5) Records of arrest, indictment, or conviction of crime which, from date of disposition, release, or parole, antedate the report by more than seven years; or
(6) Any other adverse item of information which antedates the report by more than seven years.
(b) The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with:
(1) A credit transaction involving, or which may reasonably be expected to involve, a principal amount of $50,000 or more;
(2) The underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $50,000 or more; or
(3) The employment of any individual at an annual salary which equals, or which may reasonably be expected to equal, $20,000 or more.
(a) A person may not procure or cause to be prepared an investigative consumer report on any consumer unless:
(1) It is clearly and accurately disclosed to the consumer that an investigative consumer report including information as to his character, general reputation, personal characteristics, and mode of living, whichever are applicable, may be made, and the disclosure:
(i) Is made in a writing mailed, or otherwise delivered, to the consumer, not later than three days after the date on which the report was first requested; and
(ii) Includes a statement informing the consumer of his right to request the additional disclosures provided for under subsection (b) of this section; or
(2) The report is to be used for employment purposes for which the consumer has not specifically applied.
(b) Any person who procures or causes to be prepared an investigative consumer report on any consumer shall make, upon written request made by the consumer within a reasonable period of time after the receipt by him of the disclosure required by subsection (a)(1) of this section, a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure shall be made in a writing mailed, or otherwise delivered, to the consumer not later than five days after the date on which the request for the disclosure was received from the consumer or the report was first requested, whichever is the later.
(c) No person may be held liable for any violation of subsection (a) or (b) of this section if he shows by a preponderance of the evidence that at the time of the violation he maintained reasonable procedures to assure compliance with subsection (a) or (b) of this section.
(a) (1) A consumer reporting agency shall maintain reasonable procedures designed to avoid violations of § 14-1203 of this subtitle and to limit the furnishing of consumer reports to the purposes listed under § 14-1202 of this subtitle.
(2) The procedures at a minimum shall require that prospective users of the information identify themselves, certify the purposes for which the information is sought, and certify that the information will be used for no other purpose.
(3) A consumer reporting agency shall make a reasonable effort to verify the identity of a new prospective user and the uses certified by the prospective user prior to furnishing the user a consumer report.
(4) No consumer reporting agency may furnish a consumer report to any person if it has reasonable grounds for believing that the consumer report will not be used for a purpose listed in § 14-1202 of this subtitle.
(b) Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.
(c) Notwithstanding the provisions of § 14-1202 of this subtitle, a consumer reporting agency may furnish identifying information respecting any consumer, limited to his name, address, former addresses, places of employment, or former places of employment, to a governmental agency.
(a) A consumer reporting agency shall, upon request and proper identification of a consumer, provide the consumer:
(1) An exact copy of any file on that consumer except any part of the file which contains medical information;
(2) A written explanation of codes or trade language used;
(3) A description of the rights of the consumer under this subtitle; and
(4) The name, address, and telephone number of the Commissioner.
(b) Whenever access to a file or a copy of a file has been furnished to a consumer, the consumer reporting agency may delete the sources of information acquired solely for use in an investigative report and used for no other purpose. If any action is brought by the consumer under this subtitle, the consumer reporting agency shall make such sources available to the plaintiff under appropriate discovery procedures.
(a) A consumer reporting agency shall make the disclosures required under § 14-1206(a) of this subtitle during normal business hours and on reasonable notice.
(b) The disclosures required under § 14-1206(a) of this subtitle shall be made to the consumer:
(1) In person if he appears in person and furnishes proper identification;
(2) By telephone if he has made a written request, with proper identification, for telephone disclosure and the toll charge, if any, for the telephone call is prepaid by or charged directly to the consumer; or
(3) In writing if the consumer makes a written request and furnishes proper identification.
(c) Any consumer reporting agency shall provide trained personnel to explain to the consumer any information furnished to him pursuant to § 14-1206 of this subtitle.
(d) The consumer shall be permitted to be accompanied by one other person of his choosing, who shall furnish reasonable identification. A consumer reporting agency may require the consumer to furnish a written statement granting permission to the consumer reporting agency to discuss the consumer's file in the person's presence.
(e) Except as provided in § 14-1213 of this subtitle, no consumer may bring any action or proceeding in the nature of defamation, invasion of privacy, or negligence with respect to the reporting of information against any consumer reporting agency, any user of information, based on information disclosed pursuant to this section or § 14-1206 or § 14-1212 of this subtitle, except as to false information furnished with malice or willful intent to injure the consumer. Except as provided in § 14-1213 of this subtitle, no consumer may bring any action or proceeding against a person who furnishes information to a consumer reporting agency in the nature of defamation, invasion of privacy, or negligence for unintentional error.
(a) (1) If the completeness or accuracy of any item of information contained in his file is disputed by a consumer, and the dispute is directly conveyed to the consumer reporting agency in writing by the consumer, the consumer reporting agency shall within 30 days reinvestigate and record the current status of that information unless it has reasonable grounds to believe that the dispute by the consumer is frivolous or irrelevant.
(2) If after reinvestigation the information is found to be inaccurate or can no longer be verified, the consumer reporting agency shall within 7 business days delete the information and mail:
(i) Written notice of the correction to the consumer and to each person to whom the erroneous information was furnished; and
(ii) A statement of the rights of the consumer under this subtitle.
(3) If after reinvestigation the information is found to be accurate or is verified, the consumer reporting agency shall within 7 business days mail:
(i) Written notice of the finding to the consumer; and
(ii) A statement of the rights of the consumer under this subtitle.
(4) (i) Within 60 days after receiving the notice under paragraphs (2) and (3) of this subsection, the consumer may request in writing that the consumer reporting agency disclose the name, address, and telephone number of each person contacted during the reinvestigation.
(ii) Within 30 days after receiving the consumer's written request under this paragraph, the consumer reporting agency shall make the requested disclosure.
(5) A person contacted during the reinvestigation who determines that the information was inaccurate shall correct the information in the person's records within 12 business days after the determination occurs.
(6) The presence of contradictory information in the consumer's file does not in and of itself constitute reasonable grounds for believing the dispute is frivolous or irrelevant.
(b) If a consumer reporting agency finds that a dispute is frivolous or irrelevant, the agency within 7 business days shall mail:
(1) Written notice of the finding, including the reasons for the finding, to the consumer; and
(2) A statement of the rights of the consumer under this subtitle.
(c) (1) If the reinvestigation does not resolve the dispute, the consumer may file a brief statement setting forth the nature of the dispute.
(2) The consumer reporting agency may limit statements to not more than 100 words if it provides the consumer with assistance in writing a clear summary of the dispute.
(d) Whenever a statement of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or irrelevant, the consumer reporting agency shall, in any subsequent consumer report containing the information in question, clearly note that it is disputed by the consumer and provide either the consumer's statement or a clear and accurate codification or summary of it.
(e) Following any deletion of information which is found to be inaccurate or whose accuracy can no longer be verified or any notation as to disputed information, the consumer reporting agency shall, at the request of the consumer, furnish notification that the item has been deleted or the statement, codification or summary pursuant to subsection (c) or (d) of this section to any person specifically designated by the consumer who has within 2 years prior received a consumer report for employment purposes, or within 1 year prior received a consumer report for any other purpose, which contained the deleted or disputed information. The consumer reporting agency shall clearly and conspicuously disclose to the consumer his rights to make such a request. The disclosure shall be made at or prior to the time the information is deleted or the consumer's statement regarding the disputed information is received.
(a) Notwithstanding the provisions of subsection (b) of this section, a consumer reporting agency may not impose a fee for:
(1) A consumer report provided under § 14-1206(a) of this subtitle one time during a 12-month period;
(2) A consumer report or disclosure provided under §§ 14-1206(a) and 14-1208(e) of this subtitle if the consumer makes a request for the report within 30 days after receipt by the consumer of a notification under § 14-1212 of this subtitle or notification from a debt collection agency affiliated with a consumer reporting agency stating that the consumer's credit rating may be or has been adversely affected; or
(3) A disclosure made under § 14-1208(e) of this subtitle to a person designated by the consumer of the deletion from the consumer report of information that is found to be inaccurate or can no longer be verified.
(b) (1) A consumer reporting agency may charge a consumer a reasonable fee:
(i) For a second or subsequent report made during a 12-month period under § 14-1206(a) of this subtitle, not exceeding $5; and
(ii) For furnishing information under § 14-1208(e) of this subtitle, not exceeding the fee that the consumer reporting agency would impose on each designated recipient for a consumer report.
(2) The consumer reporting agency shall indicate the amount of the fee to the consumer before providing the report or furnishing the information.
A consumer reporting agency which furnishes a consumer report for employment purposes and which for that purpose compiles and reports items of information on consumers which are matters of public record and are likely to have an adverse effect upon a consumer's ability to obtain employment shall:
(1) At the time public record information is reported to the user of the consumer report, notify the consumer of the fact that public record information is being reported by the consumer reporting agency, together with the name and address of the person to whom the information is being reported; or
(2) Maintain strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer's ability to obtain employment is reported it is complete and up to date. For purposes of this paragraph, items of public record relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported.
Whenever a consumer reporting agency prepares an investigative consumer report, any adverse information in the consumer report (other than information which is a matter of public record) may not be included in a subsequent consumer report unless the adverse information has been verified in the process of making the subsequent consumer report or the adverse information was received within the three-month period preceding the date the subsequent report is furnished.
(a) Whenever credit or insurance for personal, family, or household purposes, or employment involving a consumer is denied or the charge for credit or insurance is increased either wholly or partly because of information contained in a consumer report from a consumer reporting agency, the user of the consumer report shall so advise the consumer against whom the adverse action has been taken and supply the name and address of the consumer reporting agency making the report.
(b) Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for credit is increased either wholly or partly because of information obtained from a person other than a consumer reporting agency bearing upon the consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, the user of the information shall, within a reasonable period of time not to exceed 30 days, upon the consumer's written request for the reasons for the adverse action received within 60 days after learning of the adverse action disclose the nature of the information to the consumer. The user of the information shall clearly and accurately disclose to the consumer his right to make the written request at the time the adverse action is communicated to the consumer.
(c) A person may not be held liable for any violation of this section if he shows by a preponderance of the evidence that at the time of the alleged violation he maintained reasonable procedures to assure compliance with the provisions of subsections (a) and (b) of this section.
(a) Any consumer reporting agency or user of information which willfully fails to comply with any requirement imposed under this subtitle with respect to any consumer is liable to that consumer in an amount equal to the sum of:
(1) Any actual damages sustained by the consumer as a result of the failure;
(2) Such amount of punitive damages as the court may allow; and
(3) In the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
(b) Any consumer reporting agency or user of information which is negligent in failing to comply with any requirement imposed under this subtitle with respect to any consumer is liable to that consumer in an amount equal to the sum of:
(1) Any actual damages sustained by the consumer as a result of the failure;
(2) In the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
(c) A person who furnishes information to a consumer reporting agency or a user of information has no liability under this subtitle for any failure to comply with any requirement imposed under this subtitle with respect to any consumer if, within 30 days after discovering such failure to comply and prior to institution of an action under this subtitle or the receipt of written notice of the failure to comply from the consumer, such person or user notifies the consumer of the failure to comply and makes whatever adjustments are necessary to correct the noncompliance.
(d) A person who furnishes information to a consumer reporting agency or a user of information has no liability under this subtitle for any failure to comply with any requirement imposed under this subtitle where such person or user:
(1) Unintentionally and in good faith fails to comply with any requirement imposed under this subtitle; and
(2) Makes whatever adjustments are necessary to correct the noncompliance within 30 days after such person or user receives written notice of the failure.
(e) A person who furnishes information to a consumer reporting agency or a user of information may not be held liable in an action brought under this subtitle for any failure to comply with any requirement imposed under this subtitle if such person or user shows by a preponderance of the evidence that the failure to comply was unintentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
(f) The burden shall be on the person who furnishes information to a consumer reporting agency or user of information to show that the failure to comply with any requirement under this subtitle was unintentional and in good faith.
An action to enforce any liability created under this subtitle may be brought within two years from the date on which the liability arises, except that where a defendant has materially and willfully misrepresented any information required under this subtitle to be disclosed to an individual and the information so misrepresented is material to the establishment of the defendant's liability to that individual under this subtitle, the action may be brought at any time within two years after discovery by the individual of the misrepresentation.
Any person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses shall be fined not more than $5,000 or imprisoned not more than one year or both.
Any officer or employee of a consumer reporting agency who knowingly and willfully provides information concerning an individual from the agency's files to a person not authorized to receive that information shall be fined not more than $5,000 or imprisoned not more than one year or both.
(a) Any consumer who has reason to believe that this subtitle, or any other law regulating consumer credit reporting, has been violated by any person may file with the Commissioner a complaint setting forth the details of an alleged violation.
(b) After receipt of the complaint, the Commissioner may inspect the pertinent books, records, letters and contracts of any agency, and of any person who has furnished information to the agency relating to the specific written complaint.
(a) The Commissioner may:
(1) Hold a hearing on the complaint at a time and place in this State reasonably convenient to the parties involved;
(2) Subpoena witnesses;
(3) Take depositions of witnesses residing without the State, in the manner provided for witnesses in civil actions in courts of record;
(4) Administer oaths;
(5) Issue orders for compliance with this subtitle;
(6) Issue cease and desist orders, if after a hearing the Commissioner finds a pattern and practice of violation of this subtitle; and
(7) If a consumer reporting agency that has violated any law regulating consumer credit reporting fails to comply with a lawful order of the Commissioner, impose a civil penalty of up to $100 for each violation from which the violator failed to cease and desist or for which the violator failed to take action ordered by the Commissioner for compliance with the law. In determining the amount of civil penalty to be imposed under this paragraph, the Commissioner shall consider:
(i) The seriousness of the violation;
(ii) The good faith of the violator;
(iii) The violator's history of previous violations;
(iv) The deleterious effect of the violation upon the public and the credit granting industry;
(v) The assets and financial status of the violator; and
(vi) Any other factors relevant to the determination of the financial penalty.
(b) If a person fails to comply with any lawful order of the Commissioner pursuant to this subtitle or if any witness fails to appear and testify to any matter regarding which the witness may be lawfully interrogated, on petition of the Commissioner setting forth the facts, the circuit court of any county shall:
(1) Compel obedience to the requirements of the subpoena or order;
(2) Compel the production of contracts, forms, files, and other evidence; and
(3) Order compliance with any lawful order issued by the Commissioner under the provisions of subsection (a)(5) or subsection (a)(6) of this section.
(c) If a person fails, refuses, or neglects to comply with the order of the court, the court may punish that person for contempt of court.
(d) The Administrative Procedure Act, including its provisions for judicial review of a final decision in a contested case, applies to proceedings before the Commissioner pursuant to this subtitle.
(e) (1) The Commissioner shall adopt regulations necessary to administer the provisions of this subtitle.
(2) The regulations shall include procedures for:
(i) Achieving accuracy in information collected and maintained in consumer files;
(ii) Developing a system to facilitate correction of information in a consumer file at each credit reporting agency on correction at one consumer reporting agency; and
(iii) Periodically distributing to the public a current listing of the names, addresses, and telephone numbers of consumer reporting agencies that maintain information or provide consumer reports on residents of the State.
MD Maryland Official State Statutes
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