reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-902 - Applicability

This subtitle does not apply to:
(1)    The following persons when engaged in the regular course of their respective businesses and professions:
(i)    An attorney at law;
(ii)    An escrow agent;
(iii)    A certified public accountant;
(iv)    A banking institution, other-state bank, national banking association, credit union, or savings and loan association;
(v)    A person that:
1.    Provides bill payer services, as defined in § 12-401 of this title;
2.    Does not initiate any contract with individual creditors of the debtor to compromise a debt or arrange a new payment schedule; and
3.    Does not provide any debt counseling services;
(vi)    A person that provides accelerated mortgage payment services, as defined in § 12-401 of this title;
(vii)    A title insurer, title insurance agency, or abstract company; or
(viii)    A judicial officer or a person acting under a court order;
(2)    A person while performing services incidental to the dissolution, winding up, or liquidation of a partnership, corporation, or other business enterprise;
(3)    A trade or mercantile association acting in the course of arranging the adjustment of debts with a business establishment; or
(4)    A mortgage lender, as defined in § 11-501 of this article, that:
(i)    Is licensed by the Commissioner; and
(ii)    Does not receive funds from a consumer for the purpose of distributing the funds among the consumer’s creditors in full or partial payment of the consumer’s debts.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-904 - Fees

(a)    An applicant shall submit separate applications for the applicant’s principal executive office and each branch location.
(b)    With the license application for the principal executive office of an applicant, the applicant shall pay to the Commissioner:
(1)    A nonrefundable investigation fee of $1,000 for an initial license; and
(2)    A license fee for an initial license or a license renewal for an additional 1–year term, as follows:
(i)    $500, if the applicant’s annual gross revenue is not more than $3,000,000;
(ii)    $1,000, if the applicant’s annual gross revenue is more than $3,000,000 but not more than $6,000,000;
(iii)    $2,000, if the applicant’s annual gross revenue is more than $6,000,000 but not more than $15,000,000;
(iv)    $3,000, if the applicant’s annual gross revenue is more than $15,000,000 but not more than $30,000,000; or
(v)    $4,000, if the applicant’s annual gross revenue is more than $30,000,000.
(c)    With the license application for each branch location of an applicant, the applicant shall pay to the Commissioner a $100 license fee for an initial license or a license renewal for an additional 1–year term.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-905 - Credit of Revenue From Licensing and Payment of Fines and Penalties Into Various Funds

(a)    All revenue received for the licensing of persons under this subtitle and, except as provided in subsection (b) of this section, any other fee, examination assessment, or revenue received by the Commissioner under this subtitle shall be:
(1)    Credited to the Nondepository Special Fund established under § 11–610 of this article; and
(2)    Used in accordance with § 11–610(c) 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.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-906 - Debt Management Services Without License Prohibited; Requirements

(a)    Whether or not the person maintains an office in this State, a person may not provide debt management services to consumers unless the person:
(1)    Is licensed by the Commissioner under this subtitle; or
(2)    Is exempt from licensing under this subtitle.
(b)    A separate license is required for the principal executive office of the license applicant or licensee and each branch location.
(c)    During the time period established by the Commissioner under subsection (d) 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 (d)(5) of this section.
(d)    (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 (c) of this section, the term of the licensee’s license shall extend to December 31 of the year in which the license otherwise would have expired.
(5)    The license extension fee required under subsection (c)(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.
(e)    Subject to subsection (c) 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.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-907 - License Requirements

(a)    To qualify for a license, an applicant shall satisfy the Commissioner that:
(1)    The applicant and each of the owners, officers, directors, and principals of the applicant has sufficient experience, character, financial responsibility, and general fitness to:
(i)    Engage in the business of providing debt management services;
(ii)    Warrant the belief that the debt management services business will be conducted lawfully, honestly, fairly, and efficiently; and
(iii)    Command the confidence of the public;
(2)    Each agent acting on behalf of the applicant to manage a trust account required under § 12–917 of this subtitle has sufficient experience, character, financial responsibility, and general fitness to:
(i)    Engage in the business of managing a trust account;
(ii)    Warrant the belief that the management of the trust account will be conducted lawfully, honestly, fairly, and efficiently; and
(iii)    Command the confidence of the public;
(3)    The applicant has a net worth computed according to generally accepted accounting principles of at least $50,000, plus an additional net worth of $10,000 for each location at which debt management services will be provided to consumers, up to a maximum of $500,000 as provided in subsection (b) of this section; and
(4)    Before providing counseling to a consumer, each debt management counselor employed by the applicant or the applicant’s agent will receive comprehensive training in counseling skills, personal finance, budgeting, and credit and debt management.
(b)    The Commissioner may require a net worth of up to $500,000, subject to a consideration of the following:
(1)    The nature and volume of the business or proposed business of the applicant;
(2)    The amount, nature, quality, and liquidity of the assets of the applicant;
(3)    The amount and nature of the liabilities, including contingent liabilities, of the applicant;
(4)    The history of and prospects for the applicant to earn and retain income;
(5)    The quality of the operations of the applicant;
(6)    The quality of the management of the applicant;
(7)    The nature and quality of the person that has control of the applicant; and
(8)    Any other factor that the Commissioner considers relevant.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-909 - Fingerprints and Criminal History Records Check

(a)    In connection with an initial application, a renewal application, and at any other time the Commissioner requests, an applicant or licensee shall provide fingerprints to NMLS for use by the Federal Bureau of Investigation to conduct criminal history records checks.
(b)    An applicant or licensee required to provide fingerprints under this section shall pay any processing or other required fee.
(c)    If the applicant or licensee is a corporation, the fingerprinting and criminal history records check requirements shall apply to the president and any other officer, director, principal, or owner of the corporation as required by the Commissioner.
(d)    Any agent acting on behalf of a licensee to manage a trust account required under § 12–917 of this subtitle, and any agent of the licensee who has access to the account, shall provide to NMLS fingerprints for use by the Federal Bureau of Investigation to conduct criminal history records checks.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-910 - Investigation; Time Period; Issuance; Denial

(a)    After an applicant for a license files a complete application, files a surety bond, and pays the license and investigation fees required under this subtitle, the Commissioner shall investigate the facts relevant to the application to determine if the applicant meets the requirements of this subtitle.
(b)    Unless the Commissioner notifies an applicant that a different time period is necessary, the Commissioner shall approve or deny each application for a license within 60 days after the date on which the complete application is filed, the surety bond is filed, and the fees are paid.
(c)    The Commissioner shall issue a license to any applicant that meets the requirements of this subtitle.
(d)    (1)    If an applicant does not meet the requirements of this subtitle, the Commissioner:
(i)    Subject to the hearing provisions of § 12–927 of this subtitle, shall deny the application;
(ii)    Shall notify the applicant immediately of the denial;
(iii)    Shall refund the license fee; and
(iv)    Shall keep the investigation fee.
(2)    (i)    Within 30 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 in the application.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-911 - Contents of License; Authorization; Transfer; Display; Notice on Website

(a)    (1)    Each license provided for through NMLS shall include the following information:
(i)    The name of the licensee;
(ii)    The address of the location at which the business is to be conducted; and
(iii)    The unique identifier of the licensee.
(2)    The unique identifier of the licensee shall constitute the license number for the license.
(b)    A license authorizes the licensee to provide debt management services.
(c)    A license may not be transferred, assigned, or pledged.
(d)    Each licensee shall conspicuously post, in 48 point or larger type, at the licensee’s licensed location the following information:
(1)    The licensee’s unique identifier; and
(2)    A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.
(e)    Each licensee shall conspicuously display the following information on the licensee’s website, any software application accessible to the public and used to provide debt management services, and profile page within each social media platform the licensee uses:
(1)    The licensee’s unique identifier;
(2)    A link to the NMLS Consumer Access website; and
(3)    A notice stating, “The Commissioner of Financial Regulation for the State of Maryland will accept any questions and complaints from Maryland residents regarding (name and unique identifier of the debt management services provider) at (address of Commissioner), phone (toll–free number of the Commissioner).
(f)    Only one location may be maintained under any one license.
(g)    A licensee is not required to post the information required in subsection (d) of this section if the licensee does not regularly grant access to the licensed location to members of the general public.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-912 - Term, Expiration, and Renewal of License

(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 that 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 the renewal fee established under § 12–904 of this subtitle;
(3)    Files with the Commissioner a surety bond renewal certificate or a new surety bond required under § 12–914 of this subtitle; and
(4)    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 § 12–906(c) of this subtitle.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-913 - Surrender

(a)    (1)    A licensee may surrender a license through NMLS in accordance with the process that the Commissioner requires.
(2)    With the surrender of a license, a licensee shall provide:
(i)    The reason for the license surrender;
(ii)    For each consumer for whom the licensee is providing debt management services, the following information:
1.    The name of the consumer;
2.    The total amount of funds held by the licensee for distribution to the consumer’s creditors; and
3.    The name of each creditor of the consumer that is receiving payments from the licensee for debts owed by the consumer to the creditor, and the outstanding balance owed to each creditor.
(b)    The surrender of a license does not:
(1)    Affect any administrative, civil, or criminal liability of the licensee for acts committed before the license is surrendered;
(2)    Affect the surety bond required under § 12–914 of this subtitle; or
(3)    Entitle the licensee to the return of any fee paid to the Commissioner under § 12–904 of this subtitle.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › 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 surety bond requirement under § 12–914 of this subtitle.
(b)    Unless approved by the Commissioner through NMLS, a licensee may not change a control person of the licensee, or an agent who is acting on behalf of the licensee to manage a trust account, listed on the licensee’s application under § 12–908(b)(3) and (6) of this subtitle.
(c)    (1)    To request approval of a proposed change described in subsection (b) of this section, the licensee shall notify the Commissioner through NMLS of the proposed change and submit any information that the Commissioner requires.
(2)    For a proposed change in owner or agent acting on behalf of the licensee to manage a trust account, the Commissioner may determine that the filing of a new application for the issuance of a license is warranted.
(3)    Unless the Commissioner notifies the licensee that a different time period is necessary, the Commissioner shall approve or deny a request for a change described in subsection (b) of this section within 60 days after the date the Commissioner receives all information required under paragraph (1) of this subsection.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › 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 providing debt management services;
(2)    Disburse any funds paid by or on behalf of a consumer to the consumer’s creditors within 8 business days after receipt of the funds; and
(3)    (i)    Correct any misdirected payments resulting from an error by the licensee; and
(ii)    Reimburse the consumer for any actual fees or other charges imposed by a creditor as a result of the misdirection.
(c)    A licensee may not commingle any trust account established for the benefit of consumers with any operating accounts of the licensee.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › 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 last report.
(b)    A licensee shall provide the accounting required under subsection (a) of this section:
(1)    At least once during each calendar quarter; and
(2)    On cancellation or termination of the debt management services agreement.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › 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 a manner that would result in a negative amortization of any of the consumer’s debts;
(6)    Make any false, misleading, or deceptive representations or omissions of information in connection with the offer, sale, or performance of any service;
(7)    Offer, pay, or give a substantial gift, bonus, premium, reward, or other compensation to a person for referring a prospective customer to the licensee;
(8)    Offer an incentive, including a gift, bonus, premium, reward, or other compensation, to a consumer for executing a debt management services agreement with the licensee;
(9)    Charge for or provide credit insurance;
(10)    Compromise any debts of a consumer unless the licensee has obtained the prior written approval of the consumer, and the compromise benefits the consumer;
(11)    Enter into a contract or fee–for–service arrangement with a person owned, controlled by, or affiliated with an officer, a director, or an employee of the debt management services provider, or with a relative of an officer, a director, or an employee, that benefits an officer, a director, or an employee of the debt management services provider;
(12)    Advertise, display, distribute, broadcast, televise, or otherwise publish debt management service rates, terms, or services in a false, misleading, or deceptive manner;
(13)    Pay an incentive to an employee for enrolling a consumer in a debt management services plan or agreement; or
(14)    Violate any provision of federal or State law governing debt management services or other related services.
(b)    (1)    Notwithstanding any other provision of State law, a licensee may not, directly or indirectly, collect any fee for referring, advising, procuring, arranging, or assisting a consumer in obtaining any extension of credit or other consumer service from a lender or service provider if the licensee, or any owner, officer, director, principal, or employee of the licensee, is an owner, partner, director, officer, or employee of the lender or service provider.
(2)    This subsection does not prohibit a licensee from referring, advising, procuring, arranging, or assisting a consumer in obtaining any extension of credit or other consumer service from a lender or service provider of which the licensee, or any owner, officer, director, principal, or employee of the licensee, is an owner, partner, director, officer, or employee, if:
(i)    The licensee does not directly or indirectly collect any fee; and
(ii)    The consumer is provided with a written disclosure of the relationship.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-922 - Retention of Books, Accounts, and Records

(a)    To enable the Commissioner to determine compliance with this subtitle, a licensee shall make and preserve the following books, accounts, and records for a period of at least 7 years:
(1)    A general ledger containing all assets, liability, capital, income, and expense accounts;
(2)    Each debt management services agreement between the licensee and a consumer;
(3)    Books and records for each consumer with whom the licensee has a debt management services agreement;
(4)    Bank statements and bank reconciliation records;
(5)    A copy of each written summary required under § 12–916(a)(1)(i)2 of this subtitle; and
(6)    A copy of each signed acknowledgment required under § 12–916(a)(1)(i)3 of this subtitle.
(b)    A licensee may retain the books, accounts, and records required under this section at any location, provided that the licensee:
(1)    Notifies the Commissioner in writing of the location of the books, accounts, and records; and
(2)    Makes the books, accounts, and records available at a location in the State, as agreed by the Commissioner and the licensee, within 7 days after a written request for examination by the Commissioner.
(c)    A licensee shall retain the books, accounts, and records required under this section in:
(1)    Original form; or
(2)    Photographic, electronic, or other similar form approved by the Commissioner.
(d)    If the Commissioner finds that the books, accounts, and records of the licensee are insufficient to determine compliance with this subtitle, the Commissioner may require the licensee to have a certified public accountant audit the licensee, at the licensee’s expense, for any period of time that the Commissioner considers necessary.
(e)    (1)    A licensee shall keep all books, accounts, and records relating to a consumer confidential, and may not disclose any information about a consumer except to a duly authorized government official, the consumer, or the consumer’s representative.
(2)    A duly authorized government official may disclose information obtained under paragraph (1) of this subsection only in accordance with Title 4 of the General Provisions Article.
(f)    The requirements of this section also apply to books, accounts, and records in the possession of a subsidiary, affiliate, or other person that relate to the operation of and services provided by the licensee’s debt management services business.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-923 - Investigation

(a)    To discover any violations of this subtitle or to obtain any information required by this subtitle, the Commissioner at any time may investigate the business of:
(1)    A licensee;
(2)    A person that is engaged or participating in the business of providing debt management services; and
(3)    Any other person that the Commissioner has cause to believe is violating this subtitle or any regulation adopted under this subtitle, whether that person claims to be within or beyond the scope of this subtitle.
(b)    For the purposes of this section, the Commissioner:
(1)    Shall be given access to the place of business, books, papers, records, safes, and vaults of the person under investigation; and
(2)    May summon and examine under oath any person whose testimony the Commissioner requires.
(c)    If, after an investigation conducted under this section, the Commissioner finds that the person that was investigated violated this subtitle or any regulation adopted under this subtitle, the person shall pay all reasonably incurred costs of the investigation.
(d)    (1)    If a person fails to comply with a subpoena or summons of the Commissioner under this subtitle or to 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 may order the person to attend and testify or produce evidence.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-924 - Examination

(a)    The Commissioner may conduct an on-site examination of a licensee with or without prior notice.
(b)    The licensee shall pay all reasonably incurred costs directly related to an examination conducted under this section, including the travel expenses, lodging expenses, and a per diem for examiners.
(c)    An on-site examination may be conducted in conjunction with an examination performed by a representative of a responsible supervisory agency of another state.
(d)    (1)    The Commissioner, in lieu of an on-site examination, may accept the examination report of a responsible supervisory agency of another state.
(2)    A report accepted under paragraph (1) of this subsection is considered for all purposes as an official report of the Commissioner.
(e)    The Commissioner may:
(1)    Examine all books, accounts, and records that the Commissioner determines are necessary to conduct a complete examination, including the books, accounts, and records in the possession of a subsidiary, affiliate, or other person that relate to the operation of and services provided by the licensee’s debt management services business; and
(2)    Examine under oath any owner, officer, director, principal, and employee of the licensee or any other individual who may provide information on behalf of the licensee.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-926 - Denial, Suspension, Revocation of License

(a)    Except as provided in subsection (c) of this section, and subject to the hearing provisions of § 12-927 of this subtitle, the Commissioner may deny a license to an applicant, reprimand a licensee, or suspend or revoke the license of a licensee if the applicant or licensee or an owner, officer, director, or principal of the applicant or licensee:
(1)    Fraudulently or deceptively obtains or attempts to obtain a license;
(2)    Fraudulently or deceptively uses a license or debt management services license number;
(3)    Presents or attempts to present the debt management services license number of another licensee as the applicant’s or licensee’s debt management services license number;
(4)    Violates any provision of this subtitle or any regulation adopted under this subtitle;
(5)    Is convicted under the laws of the United States or of any state of:
(i)    A felony; or
(ii)    A misdemeanor that is directly related to the fitness and qualification of the applicant or licensee to engage in the business of providing debt management services;
(6)    In connection with the provision of debt management services:
(i)    Commits a fraud;
(ii)    Engages in an illegal or dishonest activity;
(iii)    Has engaged or participated in an unsafe or unsound act; or
(iv)    Misrepresents or fails to disclose a material fact to a person entitled to that information;
(7)    Engages in false, misleading, or deceptive advertising; or
(8)    Otherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the applicant or licensee has not been or will not be conducted honestly, fairly, and equitably.
(b)    In determining whether to deny a license to an applicant, reprimand a licensee, or suspend or revoke the license of a licensee for a reason listed in subsection (a)(5) of this section, the Commissioner shall consider:
(1)    The nature of the crime;
(2)    The relationship of the crime to the activities authorized by the license;
(3)    With respect to a felony, the relevance of the conviction to the fitness and qualification of the applicant or licensee to provide debt management services;
(4)    The length of time since the conviction; and
(5)    The behavior and activities of the applicant or licensee since the conviction.
(c)    Subject to the hearing provisions of § 12-927 of this subtitle, the Commissioner shall deny a license to an applicant and suspend or revoke the license of a licensee if the applicant or licensee or an owner, officer, director, or principal of the applicant or licensee has:
(1)    Committed a violation of subsection (a) of this section that directly results in property damage or monetary loss by any other person; and
(2)    Has not restored the property or money to the person or paid the value of the property to the person.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-927 - Hearing

(a)    Before the Commissioner denies an application for a license under § 12-910 of this subtitle or takes any action under § 12-926 of this subtitle, the Commissioner shall give the applicant or licensee an opportunity for a hearing.
(b)    Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10, Subtitle 2 of the State Government Article.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-928 - Enforcement of Subtitle

(a)    (1)    The Commissioner may enforce the provisions of this subtitle and regulations adopted under this subtitle by:
(i)    Issuing an order requiring the violator:
1.    To cease and desist from the violation and any further similar violations; and
2.    To take affirmative action to correct the violation, including the restitution of money or property to any person aggrieved by the violation; and
(ii)    Imposing a civil penalty not exceeding $10,000 for each violation.
(2)    An order issued under this subsection may apply to a licensee’s agent that violates any provision of this subtitle or the regulations adopted under this subtitle.
(3)    If a violator fails to comply with an order issued under paragraph (1)(i) of this subsection, the Commissioner may impose a civil penalty not exceeding $25,000 for each violation from which the violator failed to cease and desist or for which the violator failed to take corrective affirmative action.
(b)    The Commissioner may file a petition in the circuit court for any county seeking enforcement of an order issued under this section.
(c)    In determining the amount of financial penalty to be imposed under subsection (a) of this section, the Commissioner shall consider the following:
(1)    The seriousness of the violation;
(2)    The good faith of the violator;
(3)    The violator’s history of previous violations;
(4)    The deleterious effect of the violation on the public;
(5)    The assets of the violator; and
(6)    Any other factors relevant to the determination of the financial penalty.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 9 - Maryland Debt Management Services Act › Section 12-929 - Penalty for Violation of Subtitle

A person who knowingly and willfully violates any provision of this subtitle is guilty of a felony and on conviction is subject to a fine not exceeding $1,000 for the first violation and not exceeding $5,000 for each subsequent violation or imprisonment not exceeding 5 years or both.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1001 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Consumer” means an individual who:
(1)    Resides in the State; and
(2)    Is seeking debt settlement services or has entered into a debt settlement services agreement in connection with debts that are consumer debts, as defined in § 13–101 of the Commercial Law Article.
(c)    “Debt management services” has the meaning stated in § 12–901 of this title.
(d)    (1)    “Debt settlement services” means any service or program represented, directly or by implication, to renegotiate, settle, reduce, or in any way alter the terms of payment or other terms of a debt between a consumer and one or more unsecured creditors or debt collectors, including a reduction in the balance, interest rate, or fees owed by a consumer to an unsecured creditor or debt collector.
(2)    “Debt settlement services” does not include debt management services.
(e)    “Debt settlement services agreement” means a written contract, plan, or agreement between a debt settlement services provider and a consumer for the performance of debt settlement services.
(f)    “Debt settlement services fee” means a fee charged to a consumer by a debt settlement services provider for providing debt settlement services for a consumer.
(g)    “Debt settlement services provider” means a person that provides or offers to provide debt settlement services for a consumer regardless of whether the person provides the debt settlement services on a for–profit or not–for–profit basis.
(h)    “Dedicated account” means an account described in § 12–1010(d) of this subtitle.
(i)    “Offer, provide, or attempt to provide debt settlement services” means providing debt settlement services:
(1)    To consumers through any means, including telephone telemarketing, Internet solicitation, and face–to–face meetings; and
(2)    On an intrastate or interstate basis.
(j)    “Principal amount of the debt” means the amount of a debt at the time the debt is included in a debt settlement services agreement.
(k)    “Registrant” means a person registered under this subtitle to provide debt settlement services.
(l)    “Student education loan” has the meaning stated in § 2–104.1(a) of this article.
(m)    “Unique identifier” means a number or another identifier assigned by NMLS.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1002 - Scope of Provisions; Providing Debt Management Services

(a)    Subject to subsection (b) of this section, the provisions of this subtitle are in addition to and not in substitution for any other provision of law.
(b)    A person who periodically receives funds from consumers to be used in connection with providing debt settlement services is not engaged in providing debt management services, and is not subject to Subtitle 9 of this title, if the person:
(1)    Complies with the requirements of this subtitle;
(2)    (i)    Negotiates to settle a consumer’s debts by reducing the principal amount of the debts owed; and
(ii)    Makes no more than six settlement payments for each debt; and
(3)    Establishes a dedicated account that:
(i)    Is separate from any trust account established by the person under § 12–917 of this title; and
(ii)    Is not established solely for the purpose of holding consumer funds to be disbursed to the debt settlement services provider for fees.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1003 - Applicability of Subtitle

This subtitle does not apply to:
(1)    The following persons when engaged in the regular course of their respective businesses and professions:
(i)    An attorney at law who is admitted to the Maryland Bar while the attorney at law is providing professional legal services in an attorney–client relationship;
(ii)    An escrow agent;
(iii)    A certified public accountant;
(iv)    A banking institution, other–state bank, national banking association, credit union, or savings and loan association;
(v)    A person that:
1.    Provides a bill payer service, as defined in § 12–401 of this title;
2.    Does not initiate any contract with individual creditors of a debtor to compromise a debt or arrange a new payment schedule; and
3.    Does not provide any debt counseling services;
(vi)    A person that provides an accelerated mortgage payment service, as defined in § 12–401 of this title;
(vii)    A title insurer, title insurance agency, or abstract company; or
(viii)    A judicial officer or a person acting under a court order;
(2)    A person while performing services incidental to the dissolution, winding up, or liquidation of a partnership, corporation, or other business enterprise;
(3)    A trade or mercantile association acting in the course of arranging the adjustment of debts with a business establishment;
(4)    (i)    A mortgage lender, as defined in § 11–501 of this article:
1.    That is licensed by the Commissioner; and
2.    While engaged in the mortgage lending business, as defined in § 11–501 of this article; or
(ii)    An employee of a mortgage lender; or
(5)    A collection agency, as defined in § 7–101 of the Business Regulation Article:
(i)    That is licensed by the State Collection Agency Licensing Board; and
(ii)    While engaged in the collection agency business, as defined in § 7–101 of the Business Regulation Article.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1004 - Registration Required

(a)    A person may not offer, provide, or attempt to provide debt settlement services unless the person:
(1)    Is registered with the Commissioner under this subtitle; or
(2)    Is exempt from registration under this subtitle.
(b)    During the time period established by the Commissioner under subsection (c) of this section, each registrant shall:
(1)    Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS; and
(2)    Transfer registration information to NMLS.
(c)    (1)    The Commissioner shall establish a time period that is not less than 2 months within which a registrant must transfer registration information to NMLS.
(2)    The time period that the Commissioner establishes under this subsection shall begin on or after July 1, 2019.
(3)    At least 30 days before the transfer period begins, the Commissioner shall:
(i)    Notify registrants of the transfer period; and
(ii)    Provide instructions for the transfer of registration information to NMLS.
(d)    Subject to subsection (b) of this section, an applicant for the issuance of a registration or a renewal of a registration shall apply for the initial registration or the renewal of the registration through NMLS:
(1)    On or after July 1, 2019; or
(2)    If the Commissioner has not joined NMLS with respect to persons required to be registered under this subtitle as of July 1, 2019, on or after the date that the Commissioner joins, as specified by the Commissioner by public notice.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1005 - Implementation of Subtitle

To carry out the provisions of this subtitle, the Commissioner may:
(1)    Adopt regulations;
(2)    Enter into cooperative and information sharing agreements with any federal or State regulatory agency having authority over debt settlement services providers; and
(3)    Exchange information about a debt settlement services provider, including information obtained during an examination, with any federal or State regulatory agency having authority over the debt settlement services provider.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1006 - Fees

(a)    A person registering as a debt settlement services provider with the Commissioner under this subtitle shall pay to the Commissioner a nonrefundable fee in the amount of:
(1)    $400 for the issuance of a registration under this subtitle; and
(2)    $400 for the renewal of a registration under this subtitle.
(b)    In addition to the registration fee required under subsection (a) of this section, a registrant for the issuance of a registration or a renewal of a registration shall pay to NMLS any fees that NMLS imposes in connection with the issuance of the registration or the renewal of the registration.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1007 - Use of Fees; Fines and Penalties Paid to General Fund

(a)    All revenue received for the registration of persons under this subtitle and, except as provided in subsection (b) of this section, any other fee, examination assessment, or revenue received by the Commissioner under this subtitle shall be:
(1)    Credited to the Nondepository Special Fund established under § 11–610 of this article; and
(2)    Used in accordance with § 11–610(c) 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.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1008 - Application

(a)    To apply for a registration, an applicant shall submit to the Commissioner an application on the form that the Commissioner provides.
(b)    The application shall include:
(1)    The applicant’s legal name, trade name, if any, main office address, telephone number, electronic mail address, if any, and website address, if any;
(2)    The name, address, and telephone number of the applicant’s designated contact for receipt of complaints;
(3)    The name, address, and telephone number of the applicant’s resident agent in the State; and
(4)    Any other information that the Commissioner reasonably requires.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1009 - Registration -- Expiration and Renewal

(a)    A registration issued under this subtitle expires on December 31 of each year.
(b)    On or after November 1 of the year in which a registration expires, the registration may be renewed for an additional 1–year term if the registrant:
(1)    Otherwise is entitled to be registered;
(2)    Pays to the Commissioner the renewal fee established under § 12–1006 of this subtitle;
(3)    Submits to the Commissioner a renewal application on the form that the Commissioner requires; and
(4)    Pays to NMLS any fees that NMLS imposes in connection with the renewal of the registration.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1012.1 - Certain Actions Prohibited by Debt Settlement Services Provider

A debt settlement services provider engaged in student education loan debt relief may not:
(1)    Advise, expressly or by implication, that a consumer stop making payments or stop communicating with the consumer’s student loan servicer; or
(2)    Access or obtain a consumer’s student aid information in violation of federal law.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1013 - Advertisement

(a)    An advertisement for debt settlement services shall include clearly and conspicuously a disclosure that, to the extent that any aspect of the debt settlement services relies on or results in the consumer’s failure to make timely payments to the consumer’s creditors or debt collectors, the use of the debt settlement services:
(1)    Will likely adversely affect the consumer’s creditworthiness;
(2)    May result in the consumer being subject to collections or being sued by creditors or debt collectors; and
(3)    May increase the amount of money the consumer owes due to the accrual of fees and interest by creditors or debt collectors.
(b)    An advertisement for debt settlement services for student education loan debt relief shall include clearly and conspicuously a disclosure in substantially the following form:
“(Name of company) is a private company, and is not affiliated with the United States Department of Education or any other academic entity or governmental agency. (Name of company) is not a lender, guarantor, or servicer of federal student loans. You can apply for consolidation and other repayment plans without paid assistance through the United States Department of Education. More information is available on the Department’s website or through your federal student loan servicer. You can find out who your servicer is through the United States Department of Education.”.
2023 Maryland Statutes › Financial Institutions › Title 12 - Miscellaneous Institutions and Activities › Subtitle 10 - Maryland Debt Settlement Services Act › Section 12-1015 - Annual Report

(a)    On or before March 15 of each year, a registrant shall report to the Commissioner on the debt settlement services business of the registrant conducted during the preceding calendar year.
(b)    The annual report shall be on the form that the Commissioner requires.