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Financial Services Law Insights and Observations

Maryland Collection Agency Licensing Board issues advisory notice to collection agencies

State Issues Covid-19 Maryland Debt Collection Licensing

State Issues

On May 11, the Maryland State Collection Agency Licensing Board issued an advisory notice regarding voluntary cessation of collection agency activity. The board noted its expectation that collection agencies that voluntarily cease business operations in Maryland do so in compliance with their respective business continuity plans to manage any related disruptions in compliance and otherwise wind down operations in an orderly manner that protects consumers from harm. The notice sets forth certain minimum requirements that a collection agency must meet, including promptly notifying the owner of consumer claims assigned to the collection agency if collection of the consumer claims will cease and remitting any and all consumer payments held in custodial accounts. Collection agencies temporarily or permanently ceasing operations must provide the board with documentation explaining its plans to meet the expectations set forth in the guidance.