Source: https://www.creditrepairtrackingpro.com/startupcoach/state-laws/maryland-credit-repair/
Timestamp: 2019-04-21 20:33:31+00:00

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(b) Commissioner.- “Commissioner” means the Commissioner of Financial Regulation of the Department of Labor, Licensing, and Regulation.
(c) Consumer.- “Consumer” means any individual who is solicited to purchase or who purchases for personal, family, or household purposes the services of a credit services business.
(d) Consumer reporting agency; consumer report; investigative consumer report; file.- “Consumer reporting agency”, “consumer report”, “investigative consumer report”, and “file” shall have the meaning ascribed to each under § 14-1201 of this title.
(iii) Providing advice or assistance to a consumer with regard to either subparagraph (i) or (ii) of this paragraph.
(2) “Credit services business” includes a person who sells or attempts to sell written materials containing information that the person represents will enable a consumer to establish a new credit file or record.
(ix) An individual licensed by the Maryland Board of Public Accountancy when the individual renders services within the course and scope of practice by the individual as a certified public accountant and does not engage in the credit services business on a regular and continuing basis.
(f) Extension of credit.- “Extension of credit” means the right to defer payment of debt or to incur debt and defer its payment, offered or granted primarily for personal, family, or household purposes.
(g) Person.- “Person” includes an individual, corporation, government or governmental subdivision or agency, business trust, statutory trust, estate, trust, partnership, association, 2 or more persons having a joint or common interest, and any other legal or commercial entity.
(9) Assist a consumer to obtain an extension of credit at a rate of interest which, except for federal preemption of State law, would be prohibited under Title 12 of this article.
§ 14-1903. Application of subtitle; licenses.
(3) The credit services business makes any verbal or written solicitation or communication that originates either inside or outside of this State but is received in the State by a resident of this State.
(b) Licenses – Required.- A credit services business is required to be licensed under this subtitle and is subject to the licensing, investigatory, enforcement, and penalty provisions of this subtitle and Title 11, Subtitle 3 of the Financial Institutions Article.
(c) Same – Issuance.- A license required by this subtitle shall be issued by the Commissioner.
(d) Same – Exemptions.- A person not included within the definition of a credit services business as provided in § 14-1901(e)(3) of this subtitle is exempt from licensure requirements under this subtitle.
§ 14-1903.1. Advertisements of credit services business.
(2) If not required to be licensed, the exemption provided by the Commissioner.
(a) Duty to provide.- Before either the execution of a contract or agreement between a consumer and a credit services business or the receipt by the credit services business of any money or other valuable consideration, the credit services business shall provide the consumer with a written information statement containing all of the information required under § 14-1905 of this subtitle.
(b) Filing.- The credit services business shall maintain on file for a period of 2 years from the date of the consumer’s acknowledgment a copy of the information statement signed by the consumer acknowledging receipt of the information statement.
§ 14-1905. Information to be included in information statement.
(6) A statement that accurately reported information may not be permanently removed from the file of a consumer reporting agency.
(3) A statement that a bond exists and the consumer’s right to proceed against the bond under the circumstances and in the manner set forth in § 14-1910 of this subtitle.
§ 14-1906. Contract with consumer.
(3) A complete and detailed description of the services to be performed and the results to be achieved by the credit services business for or on behalf of the consumer, including all guarantees and all promises of full or partial refunds and a list of the adverse information appearing on the consumer’s credit report that the credit services business expects to have modified and the estimated date by which each modification will occur; and (4) The principal business address of the credit services business and the name and address of its agent in this State authorized to receive service of process.
cancellation notice, or any other written notice, to …………………….
Not later than midnight ………………..
(c) Copies of completed contract and other documents to be given to consumer.- A copy of the completed contract and all other documents the credit services business requires the consumer to sign shall be given by the credit services business to the consumer at the time they are signed.
§ 14-1907. Violations; void contracts; waivers; burden of proof.
(a) Breach of contract.- Any breach by a credit services business of a contract under this subtitle, or of any obligation arising under it, shall constitute a violation of this subtitle.
(b) Void contracts.- Any contract for services from a credit services business that does not comply with the applicable provisions of this subtitle shall be void and unenforceable as contrary to the public policy of this State.
(2) Any attempt by a credit services business to have a consumer waive rights given by this subtitle shall constitute a violation of this subtitle.
(d) Burden of proof.- In any proceeding involving this subtitle, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
§ 14-1908. Surety bonds – Requirement.
A credit services business is required to obtain a surety bond pursuant to Title 11, Subtitle 3 of the Financial Institutions Article.
§ 14-1909. Same – Issuance.
The surety bond shall be issued by a surety company authorized to do business in this State.
§ 14-1910. Same – Claims against.
(a) Actions.- Any person claiming against the surety bond for a violation of this subtitle may maintain an action against the credit services business and against the surety.
(b) Liability for actual damages.- The surety shall be liable only for actual damages and not for the punitive damages permitted under § 14-1912 of this subtitle.
(c) Aggregate liability.- The aggregate liability of the surety to all persons damaged by a credit services business’s violation of this subtitle may not exceed the amount of the surety bond.
(a) Filing.- Any consumer who has reason to believe that this subtitle has been violated by any credit services business or by any other person may file a written complaint setting forth the details of the alleged violation with the Commissioner.
(b) Inspection of books, records, etc., by Commissioner.- After receiving the complaint, the Commissioner may inspect the pertinent books, records, letters and contracts of any credit services business, and of any person who has furnished information to the credit services business relating to the specific written complaint.
(c) Investigation and hearing.- The Commissioner may investigate the complaint and hold a hearing in accordance with Title 10, Subtitle 2 of the State Government Article.
(6) Issue cease and desist orders, after finding a pattern and practice of violation of this subtitle.
(1) The Commissioner shall give to the credit services business, or the salesperson, agent, representative, or independent contractor acting on behalf of the credit services business against whom a complaint is filed, written notice of the complaint and the time and place of any hearing.
(ii) Be sent by certified mail, to the principal place of business of the credit services business or the principal place of business or residence address of the salesperson, agent, representative, or independent contractor acting on behalf of the credit services business, at least 10 days prior to the date of the hearing.
(1) If, after the hearing, the Commissioner finds that the credit services business, or the salesperson, agent, representative, or independent contractor acting on behalf of the credit services business, has engaged or is engaging in any act or practice prohibited by this subtitle, the Commissioner shall order the credit services business or the person or both to cease and desist from the act or practice and may order that restitution be paid to an aggrieved consumer.
(2) The order of the Commissioner shall comply with the Administrative Procedure Act.
(1) If an appeal is not filed, the order of the Commissioner 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 of the Commissioner becomes final after a final decision of a court affirming the order or dismissing the appeal.
(3) Order compliance with any lawful order issued by the Commissioner under the provisions of subsection (d) (5) or (6) of this section.
(i) Failure to comply with court order.- If the credit services business or any other person fails, refuses, or neglects to comply with the order of the court, the court may punish that person for contempt of court.
(j) Applicability of Administrative Procedure Act.- The Administrative Procedure Act, including its provisions for judicial review of a final decision in a contested case, applies to proceedings before the Commissioner pursuant to this subtitle.
§ 14-1912. Failure to comply with requirements.
(4) In the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney’s fees as determined by the court.
(2) In the case of any successful action to enforce any liability under this section, the cost of the action together with reasonable attorney’s fees as determined by the court.
§ 14-1913. Limitation of actions for enforcement of liability.
(a) Generally.- An action to enforce any liability created under this subtitle shall be brought within 2 years from the date the violation at issue occurred.
(b) Material and willful misrepresentation.- Where a defendant has materially and willfully misrepresented any information required to be disclosed to a consumer by this subtitle and the information is material to establishing defendant’s liability, the action may be brought at any time within 2 years of the discovery of the misrepresentation.
§ 14-1914. Actions under Consumer Protection Act.
(a) Each sale is offense.- Each sale of the services of a credit services business that violates any provision of this subtitle is an unfair or deceptive trade practice under Title 13 of this article.
(b) Power of Consumer Protection Division to bring proceedings.- If the Division of Consumer Protection of the Office of the Attorney General has reason to believe that any credit services business, or any salesperson, agent, representative, or independent contractor acting on behalf of a credit services business, has violated any provision of this subtitle, the Division may institute a proceeding under Title 13 of this article.
§ 14-1915. Fines and punishments.
(a) Violation of subtitle.- Except as provided in subsection (b) of this section, any person who violates any provision of this subtitle is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $5,000 or imprisonment not exceeding 3 years or both, in addition to any civil penalties.
(b) Violation of order of Commissioner or Attorney General.- A person may not be imprisoned for violation of any provision of an order of the Commissioner or of the Attorney General entered pursuant to this subtitle or Title 13 of this article.
This subtitle may be cited as the “Maryland Credit Services Businesses Act”.

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