Title 11. Consumer Credit — Subtitle 4. Sales Finance Companies -- Licensing Provisions
Statutes in effect as of October 1, 2026.
Md. Code Ann., Fin. Inst. § 11-401 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–401LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Agreement” means an installment sale agreement, a renewed or extended installment sale agreement, and any renewal, extension, or refund agreement made in connection with an installment sale agreement.
(c)
(1)
“Buyer” means a person who buys or leases goods under an installment sale agreement, even though the person has entered into one or more renewal, extension, or refund agreements.
(2)
“Buyer” includes a prospective buyer.
(d)
(1)
“Collateral security” means any security interest in, encumbrance on, or pledge of property or goods that is given to secure performance of an obligation of a buyer or a surety for a buyer under an agreement.
(2)
“Collateral security” includes the undertaking of a surety for a buyer.
(3)
“Collateral security” does not include any goods or interest in goods that are the subject of an installment sale agreement.
(e)
(1)
“Control person” means a person who has the power, directly or indirectly, to direct the management or policies of a licensee or license applicant, whether through ownership of securities, by contract, or otherwise.
(2)
“Control person” includes a person who:
(i)
Is a general partner, an officer, a director, or a member of a licensee or license applicant, or occupies a similar position or performs a similar function;
(ii)
Directly or indirectly has the right to vote 20% or more of a class of voting securities, or has the power to sell or direct the sale of 20% or more of a class of voting securities, of a licensee or license applicant; or
(iii)
In the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity:
(1)
Has the right to receive on liquidation or dissolution of a licensee or license applicant 20% or more of the capital of the licensee or license applicant; or
(2)
Has contributed 20% or more of the capital of a licensee or license applicant.
(f)
(1)
“Goods” means all tangible personal property that has a cash price of $25,000 or less.
(2)
“Goods” does not include money or things in action.
(g)
(1)
“Installment sale agreement” means a contract for the retail sale of consumer goods, negotiated or entered into in this State, under which:
(i)
Part or all of the price is payable in one or more payments after the making of the contract; and
(ii)
The seller takes collateral security or keeps a security interest in the goods sold.
(2)
“Installment sale agreement” includes:
(i)
A prospective installment sale agreement;
(ii)
A purchase money security agreement; and
(iii)
A contract for the bailment or leasing of consumer goods under which the bailee or lessee contracts to pay as compensation a sum that is substantially equal to or is more than the value of the goods.
(3)
“Installment sale agreement” does not include:
(i)
A bona fide C.O.D. transaction or a layaway agreement as defined in § 14–1101(g) of the Commercial Law Article; or
(ii)
A lease for industrial, commercial, or agricultural purposes.
(h)
“License” means a license issued in any form by the Commissioner under this subtitle to do business as a sales finance company, including as provided for through NMLS.
(i)
“Licensed location” means any location listed by the licensee in NMLS in accordance with this subtitle.
(j)
“Licensed name” means:
(1)
The licensee’s legal name; and
(2)
Any trade name used by the licensee in accordance with § 2–121 of this article.
(k)
“Licensee” means a person licensed under this subtitle to do business as a sales finance company.
(l)
“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.
(m)
“Retail sale” means the sale of goods for use or consumption by the buyer or for the benefit or satisfaction that the buyer may derive from the use or consumption of the goods by another, but not for resale by the buyer.
(n)
“Sales finance company” means a person who is engaged, whether by purchase, discount, pledge, loan, or otherwise, in the business of acquiring, investing in, or lending money or credit on the security of any interest in:
(1)
An installment sale agreement made between other parties;
(2)
A retail credit account transaction, as defined in § 12–501 of the Commercial Law Article, made between other parties; or
(3)
A transaction that deals with home improvement, as defined in § 8–101 of the Business Regulation Article, made between other parties, if collateral security is required by and given to the contractor as a condition to the transaction.
(o)
“Security interest” has the meaning stated in § 1–201(37) of the Commercial Law Article.
(p)
“Seller” means a person who sells or leases or agrees to sell or lease goods under an installment sale agreement.
(q)
(1)
“Surety” includes a guarantor.
(2)
“Surety” does not include a seller who sells, transfers, or assigns an agreement.
(r)
“Unique identifier” means a number or another identifier assigned by NMLS.
Md. Code Ann., Fin. Inst. § 11-402 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–402LinkCopy Citation
The licensing provisions of this subtitle do not apply to any banking institution, national banking association, or other-state bank having a branch in this State.
Md. Code Ann., Fin. Inst. § 11-402.1 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–402.1LinkCopy Citation
(a)
All revenue received for the licensing and assessment of persons under this subtitle and any other fee, investigation fee or assessment, or revenue received by the Commissioner under this subtitle shall be:
(1)
Credited to the Non–Depository Special Fund established under § 2–120 of this article; and
(2)
Used in accordance with § 2–120(d) of this article.
(b)
Notwithstanding subsection (a) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner under this subtitle into the General Fund of the State.
(c)
Subject to § 2–120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.
Md. Code Ann., Fin. Inst. § 11-403 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–403LinkCopy Citation
(a)
Except as otherwise provided in this subtitle or §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not engage in business as a sales finance company unless the person is licensed by the Commissioner.
(b)
A licensee may do business as a sales finance company only at a licensed location or as otherwise authorized by the Commissioner through regulation.
(c)
A political subdivision may not require a licensee to have a local license or pay a local fee for permission to engage in business as a sales finance company.
(d)
During the time period established by the Commissioner under subsection (e) of this section, each licensee shall:
(1)
Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS;
(2)
Transfer licensing information to NMLS; and
(3)
Pay to the Commissioner a license extension fee calculated in accordance with subsection (e)(5) of this section.
(e)
(1)
The Commissioner shall establish a time period that is not less than 2 months within which a licensee must transfer licensing information to NMLS.
(2)
The time period that the Commissioner establishes under this subsection shall begin on or after July 1, 2017.
(3)
At least 30 days before the transfer period begins, the Commissioner shall:
(i)
Notify all licensees of the transfer period; and
(ii)
Provide instructions for the transfer of licensing information to NMLS.
(4)
For each licensee that complies with subsection (d) of this section, the term of the licensee’s license shall be extended to December 31 of the year in which the license otherwise would have expired.
(5)
The license extension fee required under subsection (d)(3) of this section is nonrefundable and, based on the annual license fee, shall be prorated to the number of days between the date the license otherwise would have expired and December 31 of the same year.
(f)
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:
(1)
On or after July 1, 2017; or
(2)
If the Commissioner has not joined NMLS with respect to persons required to be licensed under this subtitle as of July 1, 2017, on or after the date that the Commissioner joins, as specified by the Commissioner by public notice.
Md. Code Ann., Fin. Inst. § 11-404 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–404LinkCopy Citation
(a)
(1)
To apply for a license, an applicant shall:
(i)
Complete, sign, and submit to the Commissioner a completed application made under oath in the form, and in accordance with the process, that the Commissioner requires; and
(ii)
Provide all the information that the Commissioner requests.
(2)
The application shall include:
(i)
The applicant’s legal name and any trade name used by the applicant in accordance with § 2–121 of this article;
(ii)
The applicant’s principal executive office address;
(iii)
If the applicant is not an individual, the name and residence address of each control person;
(iv)
The address of each additional location, if any, that:
(1)
The general public may reasonably view as a location that does business as a sales finance company, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;
(2)
Houses any core operational infrastructure or technology systems;
(3)
Conducts any core management, information security and technology, risk and compliance, or finance functions; or
(4)
Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and
(v)
Any other pertinent information that the Commissioner requires.
(b)
With the application, the applicant shall pay to the Commissioner:
(1)
An investigation fee of $100; and
(2)
A license fee of $125.
Md. Code Ann., Fin. Inst. § 11-405 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–405LinkCopy Citation
The Commissioner may deny an application if the applicant or any current owner, director, officer, member, partner, employee, agent, or spouse of the applicant:
(1)
Has had a license revoked under this subtitle;
(2)
Was responsible for any act or omission that caused the revocation under this subtitle of the license of any person; or
(3)
Was convicted of violating any provision of this subtitle or of any other law that regulates agreements.
Md. Code Ann., Fin. Inst. § 11-406 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–406LinkCopy Citation
(a)
In addition to the investigation fee required by § 11–404 of this subtitle, if an applicant requests any licensed location outside of the State and the investigation includes travel to that location, the applicant shall pay to the Commissioner, on presentation by the Commissioner of a detailed account, the reasonable travel and living expenses incurred on account of the investigation.
(b)
Except for the payments required by this section, the applicant may not offer or pay and the examiner may not solicit or accept any payment with regard to the investigation.
Md. Code Ann., Fin. Inst. § 11-407 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–407LinkCopy Citation
(a)
When an applicant for a license files the application and pays the fees required by § 11–404 of this subtitle, the Commissioner shall investigate the facts relevant to the application to determine if the applicant meets the requirements of this subtitle.
(b)
The Commissioner shall approve or deny each application for a license within 60 days after the date on which the complete application is filed and the fees are paid.
(c)
The Commissioner shall issue a license to any applicant who meets the requirements of this subtitle.
(d)
(1)
If the Commissioner denies an application, the Commissioner shall:
(i)
Notify the applicant of the denial;
(ii)
Refund the license fee to the applicant; and
(iii)
Keep the investigation fee and any charges collected under § 11–406 of this subtitle.
(2)
(i)
Within 20 days after the Commissioner denies an application, the Commissioner shall send a written notice to the applicant stating the reasons for the denial.
(ii)
The notice shall be sent by United States mail, e–mail, or any means provided through NMLS to the address listed on the application.
Md. Code Ann., Fin. Inst. § 11-408 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–408LinkCopy Citation
(a)
Information in NMLS associated with a license approved by the Commissioner under this subtitle shall include the following:
(1)
The licensee’s legal name and any trade name used by the licensee in accordance with § 2–121 of this article;
(2)
The address of the licensee’s principal executive office; and
(3)
The address of each additional location, if any, where the licensee does business and that:
(i)
The general public may reasonably view as a location that does business as a sales finance company, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;
(ii)
Houses any core operational infrastructure or technology systems;
(iii)
Conducts any core management, information security and technology, risk and compliance, or finance functions; or
(iv)
Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle.
(b)
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 (a) of this section.
(c)
The unique identifier of the licensee shall constitute the license number for the license.
(d)
A license authorizes the licensee to do business under the license at any licensed location and under any licensed name, or as otherwise authorized by the Commissioner through regulation.
Md. Code Ann., Fin. Inst. § 11-409 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–409LinkCopy Citation
(a)
An initial license term shall:
(1)
Begin on the date the license is issued; and
(2)
Expire on December 31 of the year:
(i)
In which the license is issued, if the license is issued before November 1; or
(ii)
Immediately following the year in which the license is issued, if the license is issued on or after November 1.
(b)
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:
(1)
Otherwise is entitled to be licensed;
(2)
Pays to the Commissioner a renewal fee of $125; and
(3)
Submits to the Commissioner a renewal application in the form, and in accordance with the process, that the Commissioner requires.
(c)
To the extent required or permitted by NMLS, the Commissioner may determine that licenses issued under this subtitle shall expire on a staggered basis.�
(d)
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 § 11–403(d) of this subtitle.
Md. Code Ann., Fin. Inst. § 11-410 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–410LinkCopy Citation
(a)
A license is not transferable.
(b)
(1)
Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location the following information:
(i)
The licensee’s unique identifier; and
(ii)
A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.
(2)
Each licensee shall conspicuously display the following information on the licensee’s website, any software application accessible to the public and used to engage in business as a sales finance company, and profile page within each social media platform the licensee uses:
(i)
The licensee’s unique identifier; and
(ii)
A link to the NMLS Consumer Access website.
(c)
A licensee is not required to post the information required in subsection (b)(1) 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.
Md. Code Ann., Fin. Inst. § 11-411 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–411LinkCopy Citation
(a)
A licensee may not add, delete, or modify a location required to be listed in NMLS under § 11–408(a)(2) or (3) of this subtitle unless:
(1)
The licensee provides to the Commissioner, through NMLS and in accordance with any regulations the Commissioner adopts, notice of the addition, deletion, or modification;
(2)
The addition, deletion, or modification of the location is recorded with the information associated with the licensee’s license in NMLS; and
(3)
The addition, deletion, or modification of the location otherwise complies with this subtitle.
(b)
The licensee may not do business at a location required to be listed in NMLS by § 11–408(a)(2) or (3) of this subtitle until the location is recorded with the information associated with the licensee’s license in NMLS.
Md. Code Ann., Fin. Inst. § 11-412 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–412LinkCopy Citation
(a)
A licensee may surrender the license through NMLS in accordance with the process that the Commissioner requires.
(b)
If a license is surrendered voluntarily, or is suspended or revoked, the Commissioner may not refund any part of the license fee regardless of the time remaining in the license term.
(c)
The surrender of a license does not affect any civil or criminal liability of the licensee for acts committed before the license was surrendered.
Md. Code Ann., Fin. Inst. § 11-412.1 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–412.1LinkCopy Citation
(a)
(1)
The requirements under any federal law and Title 4, Subtitles 1 through 4 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.
(2)
The information and material may be shared with all state and federal regulatory officials having oversight authority over persons required to be licensed under this subtitle, 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 4 of the General Provisions Article.
(b)
Information or material that is subject to a privilege or confidentiality under subsection (a) of this section may not be subject to:
(1)
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
(2)
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.
(c)
Any provision 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 is inconsistent with subsection (a) of this section shall be superseded by the requirements of this section.
(d)
This section does not apply to information or material relating to publicly adjudicated disciplinary and enforcement actions against a person required to be licensed under this subtitle that is included in NMLS and designated for access by the public.
Md. Code Ann., Fin. Inst. § 11-413 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–413LinkCopy Citation
(a)
The Commissioner may not examine or audit any licensee or other person except as expressly provided in this section.
(b)
(1)
If a buyer has reason to believe that any person has violated any provision of this subtitle or of any other law that regulates agreements, the buyer may file with the Commissioner a written complaint that states the details of the alleged violation.
(2)
On receipt of the written complaint, the Commissioner may inspect any books, records, letters, and contracts of any licensee, seller, or other person that relate to the complaint.
(c)
In investigating a written complaint made under this section, the Commissioner may:
(1)
Hold a hearing on the complaint at a time and place in this State that are reasonably convenient to the parties involved;
(2)
Subpoena witnesses;
(3)
Take depositions of witnesses who reside outside of this State in the same manner as provided for depositions to be taken in civil actions in courts of record;
(4)
Pay witnesses the same fees and mileage for their attendance as provided for witnesses in civil actions in courts of record; and
(5)
Administer oaths.
(d)
(1)
If any person fails to comply with an order or subpoena of the Commissioner under this subtitle or to appear as a witness and testify concerning any matter about which the person may be interrogated under this subtitle, the Commissioner may file a petition for enforcement with the circuit court for any county.
(2)
On petition by the Commissioner, the court, if it finds it appropriate to do so, shall order the person to:
(i)
Obey the order or subpoena; and
(ii)
Produce any necessary records, documents, or other evidence.
(e)
The Commissioner shall make findings on any written complaint made under this section and send a copy of the findings to each person involved in the complaint.
(f)
A person may not knowingly refuse to permit the Commissioner to conduct any investigation or examination authorized by this section.
Md. Code Ann., Fin. Inst. § 11-414 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–414LinkCopy Citation
Subject to the hearing provisions of § 11–415 of this subtitle, the Commissioner may suspend or revoke the license of any licensee, if:
(1)
The licensee knowingly or without exercising due care:
(i)
Violates any provision of this subtitle or of any other law that regulates agreements; or
(ii)
Fails to comply with any demand or requirement that the Commissioner makes under this subtitle;
(2)
The licensee makes any material misstatement in an application for a license;
(3)
The licensee defrauds any buyer, to the buyer’s damage;
(4)
The licensee willfully fails to carry out any written agreement with a buyer;
(5)
The licensee knowingly and repeatedly violates any provision of the Maryland Consumer Debt Collection Act;
(6)
An officer, director, or trustee of or partner in the licensee is responsible for any act or omission that would be a ground for suspending or revoking a license; or
(7)
Any agent or employee of the licensee is responsible for any act or omission that would be a ground for suspending or revoking a license, if the licensee:
(i)
Approves or knows of that or similar acts or omissions; and
(ii)
After giving approval or learning of the act or omission, keeps any benefit, proceeds, profit, or advantage resulting from the act or omission or otherwise ratifies the act or omission.
Md. Code Ann., Fin. Inst. § 11-415 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–415LinkCopy Citation
(a)
Before the Commissioner takes any action under § 11-414 of this subtitle, the Commissioner shall give the licensee an opportunity for a hearing before the Commissioner.
(b)
Notice of the hearing shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.
(c)
The hearing notice to be given to the licensee shall be sent by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to the principal place of business of the licensee in this State at least 10 days before the hearing.
(d)
An order suspending or revoking a license shall state the grounds on which it is based and is not effective until 10 days after written notice of the order is sent to the licensee by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to the principal place of business of the licensee in this State.
(e)
The Commissioner shall adopt rules and regulations for:
(1)
The conduct of hearings; and
(2)
The form of findings and orders.
Md. Code Ann., Fin. Inst. § 11-416 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–416LinkCopy Citation
(a)
Any person aggrieved by a decision of the Commissioner to deny an application for a license or to suspend or revoke a license may appeal to:
(1)
The circuit court for the county where the licensee did or has applied to do business; or
(2)
The Circuit Court for Baltimore City.
(b)
The Commissioner may stay an order that is appealed until the determination of the appeal.
(c)
An appeal under this section shall be tried de novo.
(d)
If a decision of the Commissioner is appealed, the court may reverse, affirm, or modify the decision.
(e)
An aggrieved person or the Commissioner may appeal the decision of the court to the Court of Special Appeals.
Md. Code Ann., Fin. Inst. § 11-417 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–417LinkCopy Citation
(a)
The surrender, suspension, or revocation of a license does not impair or affect any obligation under any agreement that the licensee entered into or acquired before the license was surrendered, suspended, or revoked.
(b)
In enforcing an agreement and in dealing with the parties to that agreement, a person whose license has been surrendered, suspended, or revoked remains subject to this subtitle, including the authority of the Commissioner to examine and investigate under § 11-413 of this subtitle.
Md. Code Ann., Fin. Inst. § 11-418 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–418LinkCopy Citation
A person may not knowingly:
(1)
Make an incorrect statement of material fact in any application, report, or other statement filed under this subtitle; or
(2)
Fail to state any material fact that is necessary to give the Commissioner any information that the Commissioner requires under this subtitle.
Md. Code Ann., Fin. Inst. § 11-419 (2026)
Title 11. Consumer Credit
Subtitle 4. Sales Finance Companies -- Licensing Provisions
§ 11–419LinkCopy Citation
Any person who violates or participates in the violation of any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500 or imprisonment not exceeding 6 months or both.