In this title the following words have the meanings indicated. “Board” means the State Collection Agency Licensing Board. “Collection agency” means a person who engages directly or indirectly in the business of: collecting for, or soliciting from another, a consumer claim; or collecting a consumer claim the person owns, if the claim was in default when the person acquired it; 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; 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 employing the services of an individual or business to solicit or sell a collection system to be used for collection of a consumer claim. “Commissioner” means the Commissioner of Financial Regulation. “Consumer claim” means a claim that: is for money owed or said to be owed by a resident of the State; and 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. “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. “Control person” includes a person who: 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; 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 in the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity: has the right to receive on liquidation or dissolution of a collection agency 10% or more of the capital of the collection agency; or has contributed 10% or more of the capital of a collection agency. “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. “Licensed collection agency” means a person who is required to be licensed under this title, regardless of whether the person is actually licensed. “Licensed location” means any location listed by the licensee in NMLS in accordance with this title. “Licensed name” means: the licensee’s legal name; and any trade name used by the licensee in accordance with § 2–121 of the Financial Institutions Article. “Licensee” means a person licensed under this title to do business as a collection agency. “NMLS” has the meaning stated in § 1–101 of the Financial Institutions Article. “Unique identifier” means a number or another identifier assigned by NMLS.

In this section the following words have the meanings indicated. “Common ownership” means direct or indirect ownership of more than 50% of a person. “Principal business” means a business activity of a person that comprises more than 50% of the total business activities of the person. This title does not apply to: a bank; a federal or State credit union; a mortgage lender; a person acting under an order of a court of competent jurisdiction; 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; a savings and loan association; a title company as to its escrow business; a trust company; a lawyer who is collecting a debt for a client, unless the lawyer has an employee who: is not a lawyer; and 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 a person who is collecting a debt for another person if: both persons are related by common ownership; the person who is collecting a debt does so only for those persons to whom it is related by common ownership; the principal business of the person who is collecting a debt is not the collection of debts; and before collecting a debt, the person files with the Board: the correct name of the person; an address and telephone number of a contact person; and the name of the person’s resident agent.

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. 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: the Board under this title; or the State Division of Consumer Protection or a local consumer protection unit under the Maryland Consumer Debt Collection Act or under local law.

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