Maryland Fair Debt Collection Laws

In Maryland, the federal Fair Debt Collection Practices Act (FDCPA) (15 U.S.C. §§ 1692 and following) and state law regulate debt collectors.

The federal FDCPA applies to every state and protects consumers from unfair and deceptive debt collection practices. The FDCPA also prohibits debt collectors from contacting you at certain times and places.

Likewise, Maryland has a law protecting consumers from deceptive and abusive behavior by people and businesses collecting debts. The Maryland Consumer Debt Collection Act adds protections for consumers by covering activity by both debt collectors and creditors. In most situations, the federal FDCPA only applies to debt collectors.

What Are Maryland's Fair Debt Collection Laws?

You can find the full text of the Maryland Consumer Debt Collection Act in the Maryland Code at Md. Code [Com.], §§ 14-201 through 14-204. These laws prohibit debt collectors and creditors from engaging in deceptive, threatening, or other abusive collection behavior.

How Do Maryland's Fair Debt Collection Laws Compare to the Federal Fair Debt Collection Practices Act (FDCPA)?

The federal FDCPA limits what debt collectors can and can't do when attempting to get you to pay a debt. For example, the FDCPA:

• prevents debt collectors from talking to third parties about your debt (subject to some exceptions)
• calling you at work when you tell them not to do so, and
• engaging in other tactics designed to harass, abuse, or mislead you into paying a debt.

The FDCPA applies to debt collectors and some third-party debt buyers, but it usually doesn't cover collection activities that an original creditor performs. (When collecting its own debts, a creditor must comply with the FDCPA if it uses a different name that implies a third party is attempting to collect the debt.)

Maryland law also protects consumers from abusive and deceptive debt collection tactics. While the Maryland law is similar to the FDCPA, it also offers additional protection to consumers. For example, it covers creditors as well as debt collectors. (Md. Code [Com.], § 14-201).

Who Is Regulated by Maryland's Fair Debt Collection Laws?

The Maryland Consumer Debt Collection Act applies broadly to any collector. A collector is "a person collecting or attempting to collect an alleged debt arising out of a consumer transaction." (Md. Code [Com.], § 14-201).

So, unlike the FDCPA, which only applies to people in the business of debt collection (with a few exceptions), the Maryland Consumer Debt Collection Act covers individuals, estates, or any kind of business or legal entity. Any person or business seeking payment in Maryland, such as a creditor, as well as any collection agency or lawyer hired to collect a debt, must comply with the Maryland Consumer Debt Collection Act.

The Maryland Act covers activity related to the collection of a debt resulting from any transaction involving a person seeking or acquiring "real or personal property, services, money, or credit for personal, family, or household purposes." (Md. Code [Com.], § 14-201). This means the law covers most consumer debts, like credit card bills, charge card accounts, car payments, consumer leases, and mortgages.

What Are the Prohibited Debt Collection Practices Under Maryland Law?

The Maryland Consumer Debt Collection Act prohibits the following debt collection activities.

Collectors and Creditors Can't Make Threats

Collectors and creditors may not intimidate a debtor by:

• threatening force or violence
• threatening to disclose information that would negatively affect any debtor's reputation for creditworthiness if the collector or creditor knows that the information is false
• threatening criminal prosecution unless the transaction involved the violation of a criminal statute
• using abusive language, including obscenity or profanity, when communicating with debtors or their relatives, and
• communicating with debtors or their relatives frequently, at unusual hours, or in any way that could be considered harassment or abuse. (Md. Code [Com.], § 14-202).

Third-Party Communications Are Generally Prohibited

Collectors and creditors may not threaten to communicate with a third party, such as an employer, to undermine the debtor's reputation. Nor may the collector or creditor contact the debtor's employer unless the collector or creditor has a final court judgment confirming that the debt is owed. (Md. Code [Com.], § 14-202).

In a few instances, however, a creditor or collector may communicate with a third party. A collector or creditor may contact the debtor's spouse or, if the debtor is a minor, the debtor's parents. A collector or creditor may also contact a third party who has a legitimate business reason to know about the debt, such as someone who has guaranteed the debt. (Md. Code [Com.], § 14-202).

Collectors and Creditors May Not Use Deception

A collector or creditor may not try to trick anyone into paying a debt. In particular, a collector or creditor:

• must not claim it has a right that it knows doesn't exist or attempt to enforce such a fictional right, or
• must not send any written communication that imitates any form of judicial process from a court, government entity, or lawyer. (Md. Code [Com.], § 14-202).

What Are Your Rights If a Debt Collector Is Harassing You?

If you think a debt collector is harassing you in violation of Maryland law, you can file a complaint with the Maryland Attorney General's Consumer Protection Division and the Department of Labor. You can also file a lawsuit against the collector.

Contact the Maryland Attorney General's Consumer Protection Division and the Department of Labor

You can contact the Maryland Attorney General's Consumer Protection Division online or call their hotline at 410-528-8662 and contact the Maryland Department of Labor's Office of Financial Regulation.

The Maryland government may take action against a collector who violates the Maryland Consumer Debt Collection Act. A collection agency can lose its license for violating the Maryland Consumer Debt Collection Act.

File a Lawsuit Against a Collector or Creditor for Violating the Maryland Consumer Debt Collection Act

If a collector or creditor violates the Maryland Consumer Debt Collection Act, you can sue them. (Md. Code [Com.], § 14-203).

File a Lawsuit Against a Collector for Violating the FDCPA

If a debt collector uses abusive or deceptive collection behavior that violates the federal FDCPA, you might also be able to file a lawsuit under that federal law. If you win, you could get actual damages plus up to $1,000 in extra damages. You can also get attorneys' fees.

If you need help initiating a lawsuit, talk to a debt relief lawyer.

What Are the Penalties for Violating Maryland's Fair Debt Collection Laws?

Under the Maryland Consumer Debt Collection Act, a debtor can sue for actual damages. Maryland law doesn't mention punitive damages but does say the debtor can get damages for emotional distress or mental anguish with or without accompanying physical injury. (Md. Code [Com.], § 14-203).

How Can You Get Help With Maryland's Fair Debt Collection Laws?

You can file a complaint with the federal Consumer Financial Protection Bureau (CFPB). After you submit a complaint, the CFPB will work to get you a response from the collector, typically within 15 days.

What Are Your Rights If You're Being Sued by a Debt Collector?

If a debt collector sues you, you have the right to respond in court. You also have the right to hire an attorney to represent you in the case.

Even though you're being sued, you can still try to settle the debt. If the collector violated federal or state laws when trying to collect from you, you could have leverage in debt settlement negotiations.

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Talk to a Lawyer

If you need help dealing with an aggressive debt collector, figuring out what option is best for handling your debts, negotiating a settlement, or responding to a lawsuit for nonpayment of a debt, consider consulting with a debt relief lawyer.

If you have a lot of debts, you might want to consider filing for bankruptcy. In that situation, you'll want to talk to a bankruptcy lawyer.