Member Alert
May 7, 2010

Maryland Revises Position on Licensing of Passive Debt Buyers

On May 5, 2010, the Maryland State Collection Agency Licensing Board issued an Advisory regarding “Purchasers of Consumer Claims in Default”.

The Advisory addresses the issue of licensing requirements for those who purchase debts in default and do not otherwise collect themselves but may file suit in their own name using Maryland counsel.

The Advisory acknowledges confusion due to its June 20, 2007 letter regarding licensing and to facilitate the prompt licensing of those not already licensed, will not deem it a bar to licensure, where prior to September 1, 2010 an unlicensed consumer debt buyer engaged in suit via a licensed Maryland attorney if the debt buyer applies for a license on or before August 31, 1010.

For a copy of the Advisory Notice please click here, and the June 2007 letter please click here.

This Alert is in no way intended to be legal advice and members are encouraged to consult with counsel of their choice.