Maryland Debt Settlement Laws
Debt Settlement License Registration Required:
Statutes: Md. Financial Institutions Code Ann. §12-901 et seq.
Definitions: “Debt management counselor” means a permanent, temporary, or contractual employee of a debt management services provider or its agent who provides counseling to consumers on behalf of the debt management services provider.
“Debt management services” means receiving funds periodically from a consumer under an agreement with the consumer for the purpose of distributing the funds among the consumer’s creditors in full or partial payment of the consumer’s debts.
“Debt management services provider” means a person that provides or offers to provide debt management services to a consumer.
Statute: Md. Financial Institutions Code Ann. §12-1001 et seq.
Definition: “Debt settlement services” means any service or program represented, directly or by implication, to renegotiate, settle, reduce, or in any way alter the terms of payment or other terms of a debt between a consumer and one or more unsecured creditors or debt collectors, including a reduction in the balance, interest rate, or fees owed by a consumer to an unsecured creditor or debt collector.
“Debt settlement services” does not include debt management services.
“Debt settlement services provider” means a person that provides or offers to provide debt settlement services for a consumer regardless of whether the person provides the debt settlement services on a for-profit or not-for-profit basis.