<section article="gbr" article_name="Business Regulation" number="7-101" title_number="7" title_name="Collection Agencies" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Board” means the State Collection Agency Licensing Board.</text> </level> <level label="c"> <text>“Collection agency” means a person who engages directly or indirectly in the business of:</text> <level label="1"> <level label="i"> <text>collecting for, or soliciting from another, a consumer claim; or</text> </level> <level label="ii"> <text>collecting a consumer claim the person owns, if the claim was in default when the person acquired it;</text> </level> </level> <level label="2"> <text>collecting a consumer claim the person owns, using a name or other artifice that indicates that another party is attempting to collect the consumer claim;</text> </level> <level label="3"> <text>giving, selling, attempting to give or sell to another, or using, 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</text> </level> <level label="4"> <text>employing the services of an individual or business to solicit or sell a collection system to be used for collection of a consumer claim.</text> </level> </level> <level label="d"> <text>“Commissioner” means the Commissioner of Financial Regulation.</text> </level> <level label="e"> <text>“Consumer claim” means a claim that:</text> <level label="1"> <text>is for money owed or said to be owed by a resident of the State; and</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="f"> <level label="1"> <text>“Control person” means a person who has the power, directly or indirectly, to direct the management or policies of a collection agency, whether through ownership of securities, by contract, or otherwise.</text> </level> <level label="2"> <text>“Control person” includes a person who:</text> <level label="i"> <text>is a general partner, an officer, a director, or a member of a collection agency, or occupies a similar position or performs a similar function;</text> </level> <level label="ii"> <text>directly or indirectly has the right to vote 10% or more of a class of voting securities, or has the power to sell or direct the sale of 10% or more of a class of voting securities of a collection agency; or</text> </level> <level label="iii"> <text>in the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity:</text> <level label="1"> <text>has the right to receive on liquidation or dissolution of a collection agency 10% or more of the capital of the collection agency; or</text> </level> <level label="2"> <text>has contributed 10% or more of the capital of a collection agency.</text> </level> </level> </level> </level> <level label="g"> <text>“License” means a license issued in any form by the Board under this title to do business as a collection agency, including as provided for through NMLS.</text> </level> <level label="h"> <text>“Licensed collection agency” means a person who is required to be licensed under this title, regardless of whether the person is actually licensed.</text> </level> <level label="i"> <text>“Licensed location” means any location listed by the licensee in NMLS in accordance with this title.</text> </level> <level label="j"> <text>“Licensed name” means:</text> <level label="1"> <text>the licensee’s legal name; and</text> </level> <level label="2"> <text>any trade name used by the licensee in accordance with § 2–121 of the Financial Institutions Article.</text> </level> </level> <level label="k"> <text>“Licensee” means a person licensed under this title to do business as a collection agency.</text> </level> <level label="l"> <text>“NMLS” has the meaning stated in § 1–101 of the Financial Institutions Article.</text> </level> <level label="m"> <text>“Unique identifier” means a number or another identifier assigned by NMLS.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-102" title_number="7" title_name="Collection Agencies" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Common ownership” means direct or indirect ownership of more than 50% of a person.</text> </level> <level label="3"> <text>“Principal business” means a business activity of a person that comprises more than 50% of the total business activities of the person.</text> </level> </level> <level label="b"> <text>This title does not apply to:</text> <level label="1"> <text>a bank;</text> </level> <level label="2"> <text>a federal or State credit union;</text> </level> <level label="3"> <text>a mortgage lender;</text> </level> <level label="4"> <text>a person acting under an order of a court of competent jurisdiction;</text> </level> <level label="5"> <text>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;</text> </level> <level label="6"> <text>a savings and loan association;</text> </level> <level label="7"> <text>a title company as to its escrow business;</text> </level> <level label="8"> <text>a trust company;</text> </level> <level label="9"> <text>a lawyer who is collecting a debt for a client, unless the lawyer has an employee who:</text> <level label="i"> <text>is not a lawyer; and</text> </level> <level label="ii"> <text>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</text> </level> </level> <level label="10"> <text>a person who is collecting a debt for another person if:</text> <level label="i"> <text>both persons are related by common ownership;</text> </level> <level label="ii"> <text>the person who is collecting a debt does so only for those persons to whom it is related by common ownership;</text> </level> <level label="iii"> <text>the principal business of the person who is collecting a debt is not the collection of debts; and</text> </level> <level label="iv"> <text>before collecting a debt, the person files with the Board:</text> <level label="1"> <text>the correct name of the person;</text> </level> <level label="2"> <text>an address and telephone number of a contact person; and</text> </level> <level label="3"> <text>the name of the person’s resident agent.</text> </level> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-103" title_number="7" title_name="Collection Agencies" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>the Board under this title; or</text> </level> <level label="2"> <text>the State Division of Consumer Protection or a local consumer protection unit under the Maryland Consumer Debt Collection Act or under local law.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-104" title_number="7" title_name="Collection Agencies" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>Only the State may require a person to hold a license or to pay a fee to do business as a collection agency.</text> </section> <section article="gbr" article_name="Business Regulation" number="7-201" title_number="7" title_name="Collection Agencies" subtitle_number="2" subtitle_name="State Collection Agency Licensing Board"> <text>There is a State Collection Agency Licensing Board in the Office of Financial Regulation in the Department.</text> </section> <section article="gbr" article_name="Business Regulation" number="7-202" title_number="7" title_name="Collection Agencies" subtitle_number="2" subtitle_name="State Collection Agency Licensing Board"> <level label="a"> <level label="1"> <text>The Board consists of the following 5 members:</text> <level label="i"> <text>as an ex officio member, the Commissioner; and</text> </level> <level label="ii"> <text>4 members appointed by the Governor with the advice and consent of the Senate.</text> </level> </level> <level label="2"> <text>Of the 4 appointed members:</text> <level label="i"> <text>2 shall represent collection agencies; and</text> </level> <level label="ii"> <text>2 shall be consumer members.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Each consumer member of the Board:</text> <level label="i"> <text>shall be a member of the general public; and</text> </level> <level label="ii"> <text>shall be:</text> <level label="1"> <text>an officer or member of the board of a recognized consumer group in the State; or</text> </level> <level label="2"> <text>an employee of a local consumer protection unit in the State.</text> </level> </level> </level> <level label="2"> <text>A consumer member of the Board may not:</text> <level label="i"> <text>be a licensee or otherwise be subject to regulation by the Board; or</text> </level> <level label="ii"> <text>within 1 year before appointment, have had a financial interest in or have received compensation from a person regulated by the Board.</text> </level> </level> </level> <level label="c"> <text>While a member of the Board, a consumer member may not have a financial interest in or receive compensation from a person regulated by the Board.</text> </level> <level label="d"> <text>Before taking office, each appointee to the Board shall take the oath required by Article I, § 9 of the Maryland Constitution.</text> </level> <level label="e"> <level label="1"> <text>The term of an appointed member is 4 years and begins on July 1.</text> </level> <level label="2"> <text>At the end of a term, an appointed member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="3"> <text>A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.</text> </level> </level> <level label="f"> <level label="1"> <text>The Governor may remove an appointed member for incompetence or misconduct.</text> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection and subject to paragraph (4) of this subsection, a member shall be considered to have resigned who has been appointed to the Board by the Governor if the member did not attend at least two–thirds of the Board meetings held during any consecutive 12–month period while the member was serving on the Board.</text> </level> <level label="3"> <text>The Governor may waive a member’s resignation and allow the member to continue serving if the member has been unable to attend meetings for reasons satisfactory to the Governor and the reasons are made public.</text> </level> <level label="4"> <text>In accordance with § 8–501 of the State Government Article, the chairman shall provide notice to the Governor and the Governor shall appoint a successor.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-203" title_number="7" title_name="Collection Agencies" subtitle_number="2" subtitle_name="State Collection Agency Licensing Board"> <text>The Commissioner is chairman of the Board.</text> </section> <section article="gbr" article_name="Business Regulation" number="7-204" title_number="7" title_name="Collection Agencies" subtitle_number="2" subtitle_name="State Collection Agency Licensing Board"> <level label="a"> <text>The Board shall set the times and places of its meetings.</text> </level> <level label="b"> <text>Each member of the Board is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> <level label="c"> <text>The Board may employ a staff in accordance with the State budget.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-205" title_number="7" title_name="Collection Agencies" subtitle_number="2" subtitle_name="State Collection Agency Licensing Board"> <level label="a"> <text>To carry out this title, the Board may, subject to § 7-103(b) of this title:</text> <level label="1"> <text>receive a written complaint and hold a hearing on an alleged violation by a collection agency of the Maryland Consumer Debt Collection Act or this title;</text> </level> <level label="2"> <text>mediate a dispute between a consumer and a collection agency and suggest monetary compensation of the consumer in an amount agreeable to the consumer and collection agency or other appropriate resolution or both; and</text> </level> <level label="3"> <text>issue orders:</text> <level label="i"> <text>to cease and desist from the violation and any further similar violations; or</text> </level> <level label="ii"> <text>requiring the violator to take affirmative action to correct the violation.</text> </level> </level> </level> <level label="b"> <text>If a violator fails to comply with a lawful order issued by the Board, the Board may impose a penalty not exceeding $10,000 for each violation cited in the order, not to exceed $25,000, from which the violator failed to cease and desist or for which the violator failed to take affirmative action to correct, as ordered by the Board.</text> </level> <level label="c"> <text>In determining the amount of any penalty to be imposed under subsection (b) of this section, the Board shall consider:</text> <level label="1"> <text>the seriousness of the violation;</text> </level> <level label="2"> <text>the good faith of the violator;</text> </level> <level label="3"> <text>the violator’s history of previous violations;</text> </level> <level label="4"> <text>the deleterious effect of the violation on the public and the collection industry; and</text> </level> <level label="5"> <text>any other factors relevant to the determination of the financial penalty.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-206" title_number="7" title_name="Collection Agencies" subtitle_number="2" subtitle_name="State Collection Agency Licensing Board"> <text>Except as provided in § 7–302.2 of this title, the Board shall pay all money collected under this title into the General Fund of the State. </text> </section> <section article="gbr" article_name="Business Regulation" number="7-207" title_number="7" title_name="Collection Agencies" subtitle_number="2" subtitle_name="State Collection Agency Licensing Board"> <text>The Board exercises its powers, duties, and functions subject to the authority of the Secretary.</text> </section> <section article="gbr" article_name="Business Regulation" number="7-301" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>This section does not apply to:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>a regular employee of a licensed collection agency while the employee is acting within the scope of employment.</text> </level> </level> <level label="c"> <text>A licensee may do business as a collection agency only at a licensed location or as otherwise authorized by regulation.</text> </level> <level label="d"> <text>During the time period established by the Commissioner under subsection (e) of this section, each licensee shall:</text> <level label="1"> <text>obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS; and</text> </level> <level label="2"> <text>transfer licensing information to NMLS.</text> </level> </level> <level label="e"> <level label="1"> <text>The Commissioner shall establish a time period that is not less than 2 months within which a licensee must transfer licensing information to NMLS.</text> </level> <level label="2"> <text>The time period that the Commissioner establishes under this subsection shall begin on or after July 1, 2017.</text> </level> <level label="3"> <text>At least 30 days before the transfer period begins, the Commissioner shall:</text> <level label="i"> <text>notify all licensees of the transfer period; and</text> </level> <level label="ii"> <text>provide instructions for the transfer of licensing information to NMLS.</text> </level> </level> </level> <level label="f"> <text>Subject to subsection (d) of this section, an applicant for an initial license or a license renewal shall apply for the initial license or license renewal through NMLS:</text> <level label="1"> <text>on or after July 1, 2017; or</text> </level> <level label="2"> <text>if the Commissioner has not joined NMLS with respect to collection agencies as of July 1, 2017, on or after the date that the Commissioner joins, as specified by the Commissioner by public notice.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-302" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>An applicant for a license shall:</text> <level label="1"> <text>submit a completed application in the form, and in accordance with the process, that the Board requires;</text> </level> <level label="2"> <text>pay to the Board:</text> <level label="i"> <text>a nonrefundable application fee in the amount set by the Board; and</text> </level> <level label="ii"> <text>a nonrefundable investigation fee in the amount set by the Board; and</text> </level> </level> <level label="3"> <text>provide all the information that the Board requests.</text> </level> </level> <level label="b"> <text>An application shall be made under oath and shall include:</text> <level label="1"> <text>the applicant’s legal name, any trade name used by the applicant in accordance with § 2–121 of the Financial Institutions Article, and the applicant’s principal executive office address, telephone number, e–mail address, and Web site addresses, if any;</text> </level> <level label="2"> <text>the address of each additional location, if any, that:</text> <level label="i"> <text>the general public may reasonably view as a location that does business as a collection agency, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="ii"> <text>houses any core operational infrastructure or technology systems;</text> </level> <level label="iii"> <text>conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="iv"> <text>is otherwise required to be listed in NMLS by regulation adopted under this title;</text> </level> </level> <level label="3"> <text>the federal employer identification number or Social Security number of the applicant, as applicable;</text> </level> <level label="4"> <text>the state of formation and the date of formation of the applicant if the applicant is a business entity;</text> </level> <level label="5"> <text>the name and residence address of each control person;</text> </level> <level label="6"> <text>the name and address of the principal contact for consumer complaints;</text> </level> <level label="7"> <text>the name, address, and telephone number of the applicant’s resident agent; and</text> </level> <level label="8"> <text>any other information that the Board requests.</text> </level> </level> <level label="c"> <text>In addition to any other requirement for licensure under this subtitle, an applicant for a license shall file with the Board a surety bond as required under § 7–304 of this subtitle.</text> </level> <level label="d"> <text>The Board shall issue a license to each applicant who meets the requirements of this subtitle.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-302.1" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>The Board shall set by regulation the fees provided for in this subtitle.</text> </level> <level label="b"> <text>The fees established by the Board under this section and any annual assessments imposed by the Commissioner under § 2–120 of the Financial Institutions Article shall be reasonable and set in a manner that will collectively produce funds sufficient to cover the actual direct and indirect costs of regulating collection agencies in accordance with this title.</text> </level> <level label="c"> <text>The Board shall publish the fee schedule set by the Board.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-302.2" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>All revenue received for the licensing and assessment of persons under this title and any other fee or revenue received by the Commissioner or the Board under this title shall be:</text> <level label="1"> <text>credited to the Non–Depository Special Fund established under § 2–120 of the Financial Institutions Article; and</text> </level> <level label="2"> <text>used in accordance with § 2–120(d) of the Financial Institutions Article.</text> </level> </level> <level label="b"> <text>Notwithstanding subsection (a) of this section, the Board shall pay all fines and penalties collected by the Board under this title into the General Fund of the State.</text> </level> <level label="c"> <text>Subject to § 2–120(h) of the Financial Institutions Article, the Commissioner may impose an annual assessment on any licensee under this title.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-303" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>Within 60 days after an applicant submits a complete application for a license and pays the fees required by § 7–302 of this subtitle, the Board shall approve or deny the application.</text> </level> <level label="b"> <text>To qualify for a license, an applicant shall satisfy the Board that the applicant is of good moral character and has sufficient financial responsibility, business experience, and general fitness to:</text> <level label="1"> <text>engage in business as a collection agency;</text> </level> <level label="2"> <text>warrant the belief that the business will be conducted lawfully, honestly, fairly, and efficiently; and</text> </level> <level label="3"> <text>command the confidence of the public.</text> </level> </level> <level label="c"> <text>The Board may deny an application for a license to any person who:</text> <level label="1"> <text>has committed any act that would be a ground for reprimand, suspension, or revocation of a license under this subtitle; or</text> </level> <level label="2"> <text>otherwise fails to meet the requirements for licensure.</text> </level> </level> <level label="d"> <text>If an applicant does not meet the requirements of this subtitle, the Board shall:</text> <level label="1"> <text>deny the application; and</text> </level> <level label="2"> <text>immediately notify the applicant of the denial.</text> </level> </level> <level label="e"> <level label="1"> <text>The denial of an application under this section is subject to the hearing provisions of § 7–309 of this subtitle.</text> </level> <level label="2"> <text>An applicant who seeks a hearing on a license application denial shall file a written request for a hearing within 45 days following receipt of the notice to the applicant of the applicant’s right to a hearing.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-304" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>With an application for a new license, an applicant shall file a surety bond with the Board.</text> </level> <level label="b"> <text>The bond shall run to the Board, as obligee, for the benefit of:</text> <level label="1"> <text>the State; and</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>The bond shall be:</text> <level label="1"> <text>in the amount determined by the Board under subsection (j) of this section;</text> </level> <level label="2"> <text>issued by a surety company that:</text> <level label="i"> <text>is authorized to do business in the State; and</text> </level> <level label="ii"> <text>holds a certificate of authority issued by the Maryland Insurance Commissioner; and</text> </level> </level> <level label="3"> <text>conditioned that the licensee shall comply with the Maryland Consumer Debt Collection Act and any other laws applicable to consumer debt collection.</text> </level> </level> <level label="d"> <text>The liability of the surety:</text> <level label="1"> <text>shall be continuous;</text> </level> <level label="2"> <text>may not be aggregated or cumulative, whether or not the bond is renewed, continued, replaced, or modified;</text> </level> <level label="3"> <text>may not be determined by adding together the penal sum of the bond, or any part of the penal sum of the bond, in existence at any two or more points in time;</text> </level> <level label="4"> <text>shall be considered to be one continuous obligation, regardless of increases or decreases in the penal sum of the bond;</text> </level> <level label="5"> <text>may not be affected by:</text> <level label="i"> <text>the insolvency or bankruptcy of the licensee;</text> </level> <level label="ii"> <text>any misrepresentation, breach of warranty, failure to pay a premium, or any other act or omission of the licensee or an agent of the licensee; or</text> </level> <level label="iii"> <text>the suspension of the licensee’s license;</text> </level> </level> <level label="6"> <text>may not require an administrative enforcement action by the Board as a prerequisite to liability; and</text> </level> <level label="7"> <text>shall continue for 3 years after the later of the date on which:</text> <level label="i"> <text>the bond is canceled; or</text> </level> <level label="ii"> <text>the licensee, for any reason, ceases to be licensed.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>A bond may be canceled by the surety or the licensee by giving notice of cancellation to the Board.</text> </level> <level label="2"> <text>Notice under paragraph (1) of this subsection shall:</text> <level label="i"> <text>be in writing; and</text> </level> <level label="ii"> <text>be sent by certified mail, return receipt requested.</text> </level> </level> <level label="3"> <text>A cancellation of a bond under this subsection is not effective until 90 days after receipt of a notice of cancellation by the Board.</text> </level> </level> <level label="f"> <text>A claim against the bond may be filed with the surety by:</text> <level label="1"> <text>a claimant; or</text> </level> <level label="2"> <text>the Board for the benefit of a claimant or the State.</text> </level> </level> <level label="g"> <text>If the amount of claims against a bond exceeds the amount of the bond, the surety:</text> <level label="1"> <text>shall pay the amount of the bond to the Board for pro rata distribution to claimants; and</text> </level> <level label="2"> <text>is relieved of liability under the bond.</text> </level> </level> <level label="h"> <text>If the penal amount of the bond is reduced by payment of a claim or judgment, the licensee shall file a new or additional bond with the Board.</text> </level> <level label="i"> <text>A penalty imposed against a licensee under § 7–205(b) of this title may be collected and paid from the proceeds of a bond required under this subsection.</text> </level> <level label="j"> <level label="1"> <text>The amount of the surety bond required under subsection (c) of this section shall be in an amount of not less than $50,000 and not more than $1,000,000, as determined by the Board for each licensee.</text> </level> <level label="2"> <text>In setting the amount of the surety bond, the Board may consider:</text> <level label="i"> <text>the nature and volume of the business or proposed business of the licensee or applicant;</text> </level> <level label="ii"> <text>the financial condition of the licensee or applicant, including:</text> <level label="1"> <text>the amount, nature, quality, and liquidity of the assets of the licensee or applicant;</text> </level> <level label="2"> <text>the amount and nature of the liabilities, including contingent liabilities, of the licensee or applicant;</text> </level> <level label="3"> <text>the history of and prospects for the licensee or applicant to earn and retain income; and</text> </level> <level label="4"> <text>the potential harm to consumers if the applicant or licensee becomes financially impaired;</text> </level> </level> <level label="iii"> <text>the quality of the operations of the licensee or applicant;</text> </level> <level label="iv"> <text>the quality of the management of the licensee or applicant;</text> </level> <level label="v"> <text>the nature and quality of each control person; and</text> </level> <level label="vi"> <text>any other factor that the Board considers relevant.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-305" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>A license authorizes the licensee to do business as a collection agency at each licensed location and under each licensed name, or as otherwise authorized by regulation.</text> </level> <level label="b"> <text>Information in NMLS associated with a license approved by the Board under this subtitle shall include the following:</text> <level label="1"> <text>the licensee’s legal name and any trade name used by the licensee in accordance with § 2–121 of the Financial Institutions Article;</text> </level> <level label="2"> <text>the address of the licensee’s principal executive office; and</text> </level> <level label="3"> <text>the address of each additional location, if any, where the licensee does business and that:</text> <level label="i"> <text>the general public may reasonably view as a location that does business as a collection agency, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="ii"> <text>houses any core operational infrastructure or technology systems;</text> </level> <level label="iii"> <text>conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="iv"> <text>is otherwise required to be listed in NMLS by regulation.</text> </level> </level> </level> <level label="c"> <text>A licensee shall maintain and update the information in NMLS associated with the licensee’s license to reflect accurately at all times the information required by subsection (b) of this section.</text> </level> <level label="d"> <text>The unique identifier of the licensee shall constitute the license number for the license.</text> </level> <level label="e"> <text>A licensee may not add, delete, or modify a location required to be listed in NMLS under subsection (b) of this section unless:</text> <level label="1"> <text>the licensee provides to the Board, through NMLS and in accordance with any applicable regulations, notice of the addition, deletion, or modification;</text> </level> <level label="2"> <text>the addition, deletion, or modification of the location is recorded with the information associated with the licensee’s license in NMLS; and</text> </level> <level label="3"> <text>the addition, deletion, or modification of the location otherwise complies with this title.</text> </level> </level> <level label="f"> <text>The licensee may not do business at a location required to be listed in NMLS under subsection (b) of this section until the location is recorded with the information associated with the licensee’s license in NMLS.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-306" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>An initial license term shall:</text> <level label="1"> <text>begin on the date the license is issued; and</text> </level> <level label="2"> <text>expire on December 31 of the year:</text> <level label="i"> <text>in which the license is issued, if the license is issued before November 1; or</text> </level> <level label="ii"> <text>immediately following the year in which the license is issued, if the license is issued on or after November 1.</text> </level> </level> </level> <level label="b"> <text>On or after November 1 of the year in which a license expires, the license may be renewed for an additional 1–year term, if the licensee:</text> <level label="1"> <text>is otherwise entitled to be licensed;</text> </level> <level label="2"> <text>pays to the Board a nonrefundable renewal fee set by the Board;</text> </level> <level label="3"> <text>submits a renewal application in the form and in accordance with the process that the Board requires; and</text> </level> <level label="4"> <text>files as part of the application a surety bond as required under § 7–304 of this subtitle.</text> </level> </level> <level label="c"> <text>To the extent required or permitted by NMLS, the Board may determine that licenses issued under this subtitle shall expire on a staggered basis.</text> </level> <level label="d"> <text>A licensee may not renew a license unless, before the submission of the license renewal application, the licensee has transferred the licensee’s licensing information to NMLS in accordance with § 7–301(d) of this subtitle.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-306.1" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location, the following information:</text> <level label="1"> <text>the licensee’s unique identifier; and</text> </level> <level label="2"> <text>a statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.</text> </level> </level> <level label="b"> <text>Each licensee shall conspicuously display the following information on the licensee’s website, any software application accessible to the public and used to conduct business as a collection agency, and profile page within each social media platform the licensee uses:</text> <level label="1"> <text>the licensee’s unique identifier; and</text> </level> <level label="2"> <text>a link to the NMLS Consumer Access website.</text> </level> </level> <level label="c"> <text>A licensee is not required to post the information required under subsection (a) of this section at a licensed location if the licensee does not regularly grant access to that licensed location to members of the general public.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-307" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>A licensee may surrender a license through NMLS in accordance with the process that the Board requires.</text> </level> <level label="b"> <text>If a license is surrendered voluntarily, or is suspended or revoked, the Board may not refund any part of the license fee regardless of the time remaining in the license term.</text> </level> <level label="c"> <text>The surrender of a license does not affect any civil or criminal liability of the licensee for acts committed before the license was surrendered.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-307.1" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <level label="1"> <text>The requirements under any federal law and Title 4, Subtitles 1 through 5 of the General Provisions Article regarding the privacy or confidentiality of information or material provided to NMLS, and any privilege arising under federal or state law, including the rules of any federal or state court with respect to that information or material, shall continue to apply to that information or material after the information or material has been disclosed to NMLS.</text> </level> <level label="2"> <text>The information and material may be shared with all state and federal regulatory officials having authority over the debt collection industry, including the Financial Crimes Enforcement Network and the Office of Foreign Assets Control, and any successor to these agencies, without the loss of privilege or the loss of confidentiality protections provided by federal law or Title 4, Subtitles 1 through 5 of the General Provisions Article.</text> </level> </level> <level label="b"> <text>The Board may:</text> <level label="1"> <text>enter into information sharing agreements with any federal or state regulatory agency having authority over collection agencies or with any federal or state law enforcement agency, including the Financial Crimes Enforcement Network and the Office of Foreign Assets Control, and any successor to these agencies, provided that the agreements prohibit the agencies from disclosing any shared information without the prior written consent from the Board regarding disclosure of the particular information; and</text> </level> <level label="2"> <text>exchange information about collection agencies with any federal or state regulatory agency having authority over collection agencies or with any federal or state law enforcement agency.</text> </level> </level> <level label="c"> <text>Information or material that is subject to a privilege or confidentiality under subsection (a) of this section may not be subject to:</text> <level label="1"> <text>disclosure under any federal or state law governing the disclosure to the public of information held by an officer or agency of the federal government or a state that has received the information or material; or</text> </level> <level label="2"> <text>subpoena, discovery, or admission into evidence, in any private civil litigation or administrative process, unless, with respect to any privilege held by NMLS, the person to whom the information or material pertains waives, in whole or in part, that privilege.</text> </level> </level> <level label="d"> <text>Any provisions of Title 4, Subtitles 1 through 5 of the General Provisions Article relating to the disclosure of any information or material described in subsection (a) of this section that are inconsistent with subsection (a) of this section shall be superseded by the requirements of this section.</text> </level> <level label="e"> <text>This section does not apply to information or material relating to publicly adjudicated disciplinary and enforcement actions against a debt collection agency that is included in NMLS and designated for access by the public.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-308" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>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 or any owner, director, officer, member, partner, or agent of the licensee:</text> <level label="1"> <text>makes any material misstatement in an application for a license;</text> </level> <level label="2"> <text>is convicted under the laws of the United States or of any state of:</text> <level label="i"> <text>a felony; or</text> </level> <level label="ii"> <text>a misdemeanor that is directly related to the fitness and qualification of the person to engage in the collection agency business;</text> </level> </level> <level label="3"> <text>in connection with the collection of any consumer claim:</text> <level label="i"> <text>commits any fraud; or</text> </level> <level label="ii"> <text>engages in any illegal or dishonest activities;</text> </level> </level> <level label="4"> <text>knowingly or negligently violates the Maryland Consumer Debt Collection Act; or</text> </level> <level label="5"> <text>fails to comply with a lawful order that the Board passes under this title.</text> </level> </level> <level label="b"> <text>In determining whether to reprimand a licensee or to suspend or revoke a license for a reason described in subsection (a)(2) of this section, the Board shall consider:</text> <level label="1"> <text>the nature of the crime;</text> </level> <level label="2"> <text>the relationship of the crime to the activities authorized by the license;</text> </level> <level label="3"> <text>with respect to a felony, the relevance of the conviction to the fitness and qualification of the licensee to engage in the collection agency business;</text> </level> <level label="4"> <text>the length of time since the conviction; and</text> </level> <level label="5"> <text>the behavior and activities of the licensee since the conviction.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-309" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>A hearing shall be held at a time and place reasonably convenient to the parties.</text> </level> </level> <level label="b"> <text>The Board shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="c"> <text>The Board may administer oaths in connection with a proceeding under this section.</text> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <text>If, after due notice, the person against whom the action is contemplated does not appear, nevertheless the Board may hear and determine the matter.</text> </level> <level label="f"> <text>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:</text> <level label="1"> <text>where the licensee which is the subject of the order has its principal place of business; or</text> </level> <level label="2"> <text>if the licensee has no principal place of business in the State, where the consumer aggrieved by the violation resides.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-310" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <text>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.</text> </section> <section article="gbr" article_name="Business Regulation" number="7-311" title_number="7" title_name="Collection Agencies" subtitle_number="3" subtitle_name="Licenses"> <text>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.</text> </section> <section article="gbr" article_name="Business Regulation" number="7-401" title_number="7" title_name="Collection Agencies" subtitle_number="4" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>Except as otherwise provided in this title, a person may not knowingly and willfully do business as a collection agency in the State unless the person has a license.</text> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor, and on conviction, is subject to a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="7-501" title_number="7" title_name="Collection Agencies" subtitle_number="5" subtitle_name="Short Title; Termination of Title"> <text>This title is the Maryland Collection Agency Licensing Act.</text> </section> <section article="gbr" article_name="Business Regulation" number="7-502" title_number="7" title_name="Collection Agencies" subtitle_number="5" subtitle_name="Short Title; Termination of Title"> <text>Subject to the evaluation and reestablishment provisions of the Maryland Program Evaluation Act, this title and all regulations adopted under this title shall terminate on July 1, 2032.</text> </section>