Legal Question in Credit and Debt Law in Maryland

Re: Judgment Collection Business

Here's some snipits of Maryland Code.

TITLE 7. COLLECTION AGENCIES, SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS, � 7-102. Scope of title. (a) Definitions. -- (1) In this section the following words have the meanings indicated. (2) "Common ownership" means direct or indirect ownership of more than 50% of a person. (3) "Principal business" means a business activity of a person that comprises more than 50% of the total business activities of the person.

(b) Exclusions. -- This title does not apply to: (1) a bank; (2) a federal or State credit union;(3) a mortgage lender; (4) a person acting under an order of a court of competent jurisdiction;(5) a licensed real estate broker, or an individual acting on behalf of the real estate broker, in the collection of rent or allied charges for property;

(6) a savings and loan association;(7) a title company as to its escrow business;(8) a trust company;(9) a lawyer who is collecting a debt for a client...(10) a person who is collecting a debt for another person if:(i) both persons are related by common ownership; (ii) the person who is collecting a debt does so only for those persons to whom it is related by common ownership;(iii) the principal business of the person who is collecting a debt is not the collection of debts; and

(iv) before collecting a debt, the person files with the Board: 1. the correct name of the person; 2. an address and telephone number of a contact person; and 3. the name of the person's resident agent. [I do not see an exception for collecting after purchase or assignment]

� 14-201. Definitions...(b) Collector. -- "Collector" means a person collecting or attempting to collect an alleged debt arising out of a

consumer transaction.

Below are but a few matters that apply:

� 15-501. Prohibition against certain assignments or transfers. (a) Assignment or transfer unlawful. -- It is unlawful for a creditor who is a citizen of the State to assign or transfer a claim against a resident of the State:

(1) For the purpose of having the claim collected by attachment in a court outside the State; or(2) With the intent to deprive the debtor of his rights under the laws of the State which exempt his wages or property from execution.

� 7-205. .... If a (debt collector) violator fails to comply with a lawful order issued by the Board, the Board

may impose a penalty of up to $ 500 for each violation cited in the order, not to exceed $ 5,000, from which the violator failed to cease and desist or for which the violator failed to take affirmative action to correct, as

ordered by the Board.

THIS IS SOMETHING THAT SHOULD NOT BE DONE AT THE CASUAL SUGGESTION OF SOME COMPANY SELLING COLLECTION SOFTWARE.

Re: Judgment Collection Business

Regardless of licensing, you will still have to obey the requirements of both the federal Fair Debt Collection Practices Act, 15 U.S.C. 1692, and the Maryland Consumer Debt Collection Act, Commercial Law article sec. 14. It is not an area to tread into lightly.