In this subtitle the following words have the meanings indicated. “Applicant” means any person who applies to a creditor: Directly for an extension, renewal, or continuation of credit; or Indirectly by use of an existing credit plan for an amount exceeding a previously established credit limit. “Commissioner” means the Commissioner of Financial Regulation. “Credit” means the right granted by a creditor to a debtor to: Defer payment of a debt; Incur a debt and defer its payment; or Purchase property or services and defer payment for it. “Creditor” means any person who regularly: Extends, renews, or continues credit for personal, family or household purposes; or Arranges for the extension, renewal, or continuation of credit. “Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

The General Assembly finds that there is a need to insure that the various financial institutions and other persons and firms engaged in the extension of credit exercise their responsibility to make credit available with fairness, impartiality, and without discrimination on the basis of sex or marital status. Economic stabilization would be enhanced, and competition among the various financial institutions and other persons and firms engaged in the extension of credit would be strengthened by an absence of discrimination on the basis of sex, sexual orientation, gender identity, disability, marital status, race, color, religion, national origin, or age (provided the applicant has capacity to contract). It is the purpose of this subtitle to require that financial institutions and other persons and firms engaged in the extension of credit do not deny credit on the basis of sex, sexual orientation, gender identity, disability, marital status, race, color, religion, national origin, or age (provided the applicant has capacity to contract).

If a complaint for violation of any provisions of this subtitle is filed with the Commissioner, the Commissioner shall investigate the complaint and may hold a hearing on it in accordance with the Administrative Procedure Act. The Commissioner shall give to the creditor complained against at least 10 days’ written notice of the complaint and the time and place of any hearing. The notice shall be in writing and sent by registered or certified mail to the creditor’s principal place of business. If, after the hearing, the Commissioner finds that the creditor has engaged or is engaging in any act or practice prohibited by this subtitle, the Commissioner shall order the creditor to cease and desist from the act or practice. The order of the Commissioner shall comply with the Administrative Procedure Act. If no appeal is filed, the order becomes final after expiration of the time allowed by the Administrative Procedure Act for appeals from the Commissioner’s orders. If an appeal is filed, the order becomes final after final decision of the court affirming the order or dismissing the appeal.

With respect to any aspect of a credit transaction: A creditor may not discriminate against any applicant on the basis of sex, sexual orientation, gender identity, disability, marital status, race, color, religion, national origin, or age; A creditor that complies with the applicable provisions of the federal Equal Credit Opportunity Act, or regulations adopted under the federal Equal Credit Opportunity Act, is in compliance with the requirements of this subtitle; and Any violation of the federal Equal Credit Opportunity Act, or any regulation adopted under the federal Equal Credit Opportunity Act, is a violation of the provisions of this subtitle.

Prohibited discriminatory practices include any: Refusal to consider both applicants’ income when both parties of a marriage party apply for a joint account; Refusal to consider alimony or child support awarded by a court and received by the applicant as a valid source of income, where that source can be verified as to its amount, length of time received, and regularity of receipt; Refusal to extend credit to any person solely because of marital status or change in marital status; Refusal to issue separate accounts to married persons where each would be credit worthy if unmarried; Request for or consideration of the credit rating of an applicant’s spouse where the applicant is otherwise credit worthy and is not applying for a joint account unless the applicant lists credit references in the name of spouse or former spouse or has no individual prior credit history or the creditor permits the applicant to designate the applicant’s spouse as an authorized purchaser on the account; Refusal to recognize the legal name of any married person; and Requests for or consideration of information about birth control practices in evaluating any credit application.

The provisions of this subtitle shall be administered by the Commissioner.

Notwithstanding the provisions of § 12–703 of this subtitle, any creditor who violates any provisions of this subtitle is liable to the applicant in an amount equal to the sum of any actual damages sustained by the applicant acting either in an individual capacity or as a representative of a class. Any creditor who fails to comply with any requirement imposed under this subtitle shall be liable to the aggrieved applicant for punitive damages in an amount not greater than $10,000, as determined by the court, in addition to any actual damages provided in subsection (a) of this section. In pursuing the recovery allowed under this subsection, the applicant may proceed only in an individual capacity and not as a representative of a class. Notwithstanding subsection (b) of this section, any creditor who fails to comply with any requirement imposed under this subtitle may be liable for punitive damages in the case of a class action in such amount as the court may allow, except that as to each member of the class no minimum recovery shall be applicable, and the total recovery in such action shall not exceed the lesser of $100,000 or 1 percent of the net worth of the creditor. In determining the amount of award in any class action, the court shall consider, among other relevant factors, the amount of any actual damages awarded, the frequency and persistence of failures of compliance by the creditor, the resources of the creditor, the number of persons adversely affected, and the extent to which the creditor’s failure of compliance was intentional. When a creditor fails to comply with any requirement imposed under this subtitle, an aggrieved applicant may institute a civil action for preventive relief, including an application for a permanent or temporary injunction, restraining order, or other action. In the case of any successful action to enforce the foregoing liability, the costs of the action together with a reasonable attorney’s fee as determined by the court shall be added to any damages awarded by the court under the provisions of subsections (a), (b), and (d) of this section. A creditor does not violate this subtitle if the creditor shows by a preponderance of evidence in any administrative or judicial proceeding that the violation was not willful or resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error. An action under this title may be brought in any district court or circuit court, depending upon the amount in controversy, within one year from the date of the occurrence of the violation.

This subtitle may be cited as the Maryland Equal Credit Opportunity Act.