This guidance from the Maryland Office of Financial Regulation (OFR) and the State Collection Agency Licensing Board (SCALB) clarifies licensing requirements for businesses collecting rent from residential rental properties.

Key Requirement: Businesses that collect payments from tenants must be licensed under the Maryland Collection Agency Licensing Act (Md. Code Ann., Business Regulation Article, Title 7).

Maryland Collection Agency Licensing Act (MCALA):

MCALA defines a collection agency as any person who directly or indirectly collects or solicits consumer claims for another. A "consumer claim" is defined as money owed by a Maryland resident for a family, household, or personal purpose, arising from a transaction where the resident received credit, money, property, or services.

Crucially, MCALA does not limit "consumer claims" to delinquent claims. Therefore, any person collecting such a claim for a property owner or manager is a collection agency and must be licensed, regardless of whether the claim is delinquent.

Licensing Information:

• Details on licensing are available on the OFR’s website.
• SCALB manages licensing through the Nationwide Multistate Licensing System (NMLS).
• Applications must be submitted via NMLS.
• Instructions for applying can be found in the NMLS Resource Center

This communication is an attempt to collect a debt and any information obtained will be used for that purpose (NMLS License #2566265).