# Commercial Law (GCL)

## Title 14. Miscellaneous Consumer Protection Provisions

### Subtitle 17. Denial of Credit -- Disclosure

#### Section 14-1701

(a) In this subtitle the following terms have the meanings indicated.

(b)

  (1) "Adverse action" means a denial or revocation of credit, a change in the terms of an existing credit arrangement, or a refusal to grant credit in substantially the amount or on substantially the terms requested.

  (2) "Adverse action" does not include a refusal to extend additional credit under an existing credit arrangement where the applicant is delinquent or otherwise in default, or where such additional credit would exceed a previously established credit limit.

(c) "File" means file as defined in Sec. 14-1201(h) of this title.

(d) "Lender" or "credit grantor" means:

  (1) Any lender or credit grantor regulated under Title 12 of this article; or

  (2) A credit union making a loan under Sec. 6-601(e) of the Financial Institutions Article.

#### Section 14-1702

(a) Notwithstanding any other provision of this article, within 30 days after receipt of a completed application for credit, a lender or credit grantor shall notify the applicant of its action on the application.

(b) Notwithstanding any other provision of this article, if the lender or credit grantor has acted adversely against or denied an application for credit by a consumer, that lender must furnish the consumer with a written statement.

#### Section 14-1703

The written statement required by Sec. 14-1702 of this subtitle shall disclose to the applicant:

(1) The applicant's right to a statement of reasons within 30 days after receipt by the lender or credit grantor of a request made within 60 days after notification, made under Sec. 14-1702(a) of this subtitle;

(2) The identity of the person or office from which the statement of reasons may be obtained; and

(3) The right of the applicant to have the statement of reasons confirmed in writing on written request.

#### Section 14-1704

The written statement of reasons only meets the requirements of this subtitle if it contains the specific reasons for any adverse action taken.

#### Section 14-1705

Notwithstanding any other provisions of this subtitle, compliance with Subchapter IV of the federal Consumer Credit Protection Act and regulations promulgated thereunder shall constitute compliance with this subtitle.

#### Section 14-1706

(a) If a written complaint for violation of any provision of this subtitle or any other law of this State regulating loans or other extensions of credit is filed with the Commissioner of Financial Regulation, the Commissioner may investigate the complaint and hold a hearing on it in accordance with Sec. 11-413 of the Financial Institutions Article.

(b)

  (1) The Commissioner shall give to the credit grantor against whom a complaint is filed written notice of the complaint and the time and place of any hearing.

  (2) The notice shall:

    (i) Be in writing; and

    (ii) Be sent by certified mail, return receipt requested, to the credit grantor's principal place of business at least 10 days prior to the date of the hearing.

(c)

  (1) If, after the hearing, the Commissioner finds that the credit grantor has engaged or is engaging in any act or practice prohibited by this subtitle, the Commissioner shall order the person to cease and desist from the act or practice.

  (2) The order of the Commissioner shall comply with the Administrative Procedure Act.

(d)

  (1) 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.

  (2) If an appeal is filed, the order becomes final after a final decision of a court affirming the order or dismissing the appeal.

(e) For the purposes of this section, the Commissioner's order may not apply to any:

  (1) Incorporated bank, savings institution, or trust company;

  (2) Savings and loan association; or

  (3) Federal or State credit union.

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Md. Code Ann., Com. Law (as displayed at mgaleg.maryland.gov, October 16, 2026)