In Maryland, a person collecting a debt arising out of a consumer transaction must follow rules established by federal and state consumer debt collection laws.  For example, a debt collector may not: 

• Use grossly abusive or obscene language;
• Use or threaten violence;
• Send consumer letters that are designed to be mistaken for legal documents;
• Hurt a consumer’s credit by spreading false information about the consumer; or
• Contact a consumer’s employer or make a claim against a consumer’s wages unless through a court order

Debt collectors may write letters demanding payment, so long as they include certain notifications in their correspondence.  They can telephone a consumer at a reasonable time of day or night, and even visit a consumer at home at a reasonable hour to demand payment. 

Because this area is highly regulated, businesses in Maryland looking to hire a debt collector should check the credentials of debt collectors and also make sure their debt collector is acting in accordance with Maryland and federal law.  Businesses should also take note that, unlike federal laws governing debt collection, the Maryland laws apply both to creditors and debt collectors hired by creditors. More information about Maryland debt collection laws can be found here.

Jamie Kent Hamelburg is a business and commercial real estate attorney at Press, Dozier & Hamelburg. She can be contacted at (301) 913-5200 or by email at jhamelburg@pressdozierlaw.com. Press, Dozier & Hamelburg partners with businesses to achieve their goals, and represents families and individuals, often when they are most vulnerable. Our attorneys deliver valuable insight and counsel in the areas of business law, employment law, litigation, commercial real estate, estate planning and administration, and business succession planning. We provide all of our clients with personal service, emphasizing responsiveness, sensitivity, and respect. We are located in Bethesda and serve Maryland, Virginia and Washington, DC. 

Note: The content in this Blog is for informational purposes only and should not be acted upon without first consulting legal counsel. It is not intended to constitute legal advice.