Debt Collection
A debt collection agency is defined as any person directly or indirectly engaged in the business of collecting for others a claim due to a seller, lender, holder, or creditor. Claims are defined as transactions involving a Maryland resident seeking or acquiring real or personal property; services; money; or credit for personal, family, or household purposes.
A collection agency includes any person who provides a system of letters or forms used in the collection of claims that assert, directly or indirectly, that the claims are collected by a person other than the creditor or owner of the claim. A person may not engage in the business of a collection agency in this State without first submitting a $400 biennial license fee and filing a surety bond ($5,000) with the commissioner. If an applicant operates several places of business, separate applications for licenses must be made for each place of business.
The Collection Agency Licensing Board, under the commissioner, has the power to: (1) issue, suspend and revoke licenses, and reprimand licensees; (2) receive complaints and hold hearings; and (3) mediate disputes between consumers and debt collection agencies.

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