Maryland Debt Collection and Consumer Protection Law

The Maryland legislature has enacted supplementary state laws (Md. Comm. Law Code Ann. §§14-201 to 204) to the federal Fair Debt Collection Practices Act of 1977 (15 USCA § 1692 et seq.). The state statutes supplement the FDCPA by providing additional protections to Maryland consumers.

Maryland law is broader than the FDCPA in that it also applies to "creditors" and not just to "collectors." Further, Maryland prohibits, among other things, various types of misrepresentation, disclosure of a debtor's indebtedness to third parties without a legitimate business need, contacting a debtor's employer except as is provided for in the state's statute and threatening, coercive or harassing communications by the debt collector.

In addition, the Maryland statutes, in specified instances, provide consumers with a private cause of action against debt collectors who violate the state's statutes (giving consumers the right to sue offending debt collectors).  Moreover, the state statutes provide for the award of damages for certain emotional distress caused by the debt collector's actions.

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For more information on Maryland debt collection law, click on the links below.

Links:

• Dealing with Debt Collectors from the Maryland Attorney General
• Title 15, Debt Collection - Special Provisions
• Maryland Courts

Federal Law: Fair Debt Collection Practices Act (FDCPA)

The FDCPA is a federal law that provides residents of all states with considerable rights and protections against abusive, unfair and deceptive debt collection practices by debt collectors. Examples of debt collection practices prohibited by the FDCPA include using profane language, lying and calling a debtor at work if the debt collector knows the employer disapproves. The debt collector must also protect the debtor’s privacy by not disclosing the debt to others such as friends, family members or co-workers.

A debt collector, as defined in the FDCPA, is anyone who regularly collects debts on behalf of an original creditor. Original creditors, such as credit card companies and banks, are not considered debt collectors when they attempt to collect debts owed directly to them. Therefore, original creditors are not covered under the FDCPA.

The FDCPA covers only consumer debt, which includes personal, family and household debt, but not business debt or any debt incurred for business purposes. Common types of consumer debt are credit card debt, automobile loans, home loans, utility bills and medical debt.

For more information on the FDCPA, including what debt collectors can and cannot do and what you can do if you believe a debt collector violated your rights under the FDCPA, please visit our FDCPA information page.