The Maryland State Collection Agency Licensing Board (CALB) released an advisory notice clarifying licensing requirements for debt purchasers that collect debts by filing lawsuits.
The notice acknowledges a June 2007 letter provided by CALB may have created confusion over licensing requirements for debt purchasers who collect only through litigation. The notice clarifies that a debt purchaser who collects a consumer debt by filing a lawsuit is a collection agency under Maryland law and required to be licensed as such.
The advisory notice states no action will be brought against a debt purchaser for not being licensed when filing suit on a defaulted consumer debt, provided the debt purchaser applies for a license on or before Aug. 31, 2010.
The advisory notice and applicable regulations do not require all debt purchasers to obtain a license. It still appears debt purchasers that do not actively engage in collection activity or engage in civil litigation are not required to obtain a collection agency license.
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