Section 12-914 – Surety Bond
(a) With the application for a new license, an applicant shall file a surety bond with the Commissioner. (b) (1) The bond shall run to the Commissioner, as obligee, for the benefit of: (i) The State; and (ii) Any consumer who is injured by a violation of this subtitle or a regulation adopted under this subtitle committed by a licensee […]
Section 12-930 – Civil Action
In addition to any other remedies provided in this subtitle, a consumer may bring a civil action to recover for any damages caused by a violation of this subtitle, including court costs and reasonable attorney’s fees.
Section 12-915 – Change of Information Included in the Application
(a) (1) A licensee shall update through NMLS any change in the information required to be included in the licensee’s application under § 12–908(b)(1) and (2) of this subtitle at least 30 days before the change is effective. (2) The licensee shall ensure that, after the change described in this subsection, the licensee will continue to satisfy the […]
Section 12-931 – Title
This subtitle may be cited as the Maryland Debt Management Services Act.
Section 12-916 – Requirements for Providing Debt Management Services
(a) (1) A licensee may not perform debt management services for a consumer unless: (i) 1. The licensee provides the consumer with a consumer education program; 2. The licensee provides the consumer with a written summary of the counseling options and strategies for addressing the consumer’s debt problems developed under § 12–901(f)(2) of this subtitle; and 3. The consumer signs an […]
Section 12-917 – Trust Account
(a) Within 2 business days after receipt, a licensee shall deposit, in a trust account established for the benefit of consumers, any funds paid to the licensee by or on behalf of a consumer for disbursement to the consumer’s creditors. (b) A licensee shall: (1) Maintain separate records of account for each consumer to whom the licensee is […]
Section 12-918 – Fees
(a) With respect to the provision of debt management services, a licensee may not impose any fees or other charges on a consumer, or receive any funds or other payments from a consumer or another person on behalf of a consumer: (1) Except as provided in subsections (g)(3) and (i) of this section, until after the licensee […]
Section 12-919 – Accounting
(a) A licensee shall provide to each consumer with whom the licensee has a debt management services agreement a written accounting of: (1) The amount of funds received from the consumer for payment to the consumer’s creditors since the last report; and (2) The amounts and dates of disbursements made to each creditor of the consumer since the […]
Section 12-920 – Prohibited Activities
(a) A licensee may not: (1) Purchase any debt or obligation of a consumer; (2) Lend money or provide credit to a consumer; (3) Obtain a mortgage or other security interest in property owned by a consumer; (4) Operate as a collection agency, as defined in § 7–101 of the Business Regulation Article; (5) Structure a debt management services agreement in […]
Section 12-921 – Reports
(a) (1) On or before April 30 of each year, a licensee shall report to the Commissioner on the debt management services business of the licensee conducted during the preceding calendar year. (2) The annual report shall be on the form that the Commissioner requires. (3) The report shall include: (i) An audited financial statement that is prepared in accordance […]