Maryland banking regulators release settlement agreement with bank

Bank Regulatory Licensing Maryland Debt Collection

On May 16, the Maryland Office of Financial Regulation (OFR) publicized an April 30 settlement agreement pursuant to which the Maryland banking agencies will withdraw its four counts against the bank and dismiss the case with prejudice. The OFR alleged the bank violated certain of the state’s credit provisions by making loans without a license, and that its fintech partners allegedly violating the Maryland Collection Agency Licensing Act (MCALA) and the Maryland Credit Services Business Act (MCSBA). Under the settlement agreement, the respondents agreed to clearly and conspicuously provide the bank’s name and contact information in all advertisements and other communications related to credit issuance to Maryland consumers, and the fintech company agreed to get licensed as a debt collection agency under MCALA and otherwise comply with the MCSBA (without explicitly agreeing to obtain a license or not); the fintech will pay the OFR a $50,000 investigative fee and a $225,000 administrative payment.