MCALA

Md. Holds Unlicensed Debt Buyer Judgments Are Not Void; Consumers Have Private Action

Md. Holds Unlicensed Debt Buyer Judgments Are Not Void; Consumers Have Private Action

Md. holds that even a “passive” owner of a consumer debt may be required to hold a collection agency license, but a judgment in favor of an unlicensed collection agency is not void based merely on lack of licensure.  However, aggrieved consumers could proceed with a private cause of action against the unlicensed collection agency.

Md. Holds Collection Agency License Not Required for Foreclosing Creditor

Md. Holds  Collection Agency License Not Required for Foreclosing Creditor

The Court of Appeals of Maryland held that a foreign statutory trust, which merely served as a special purpose vehicle to own a mortgage loan, was not required to obtain a collection agency license prior to pursing foreclosure through its substitute trustees.

Md. App. Holds Debt Buyer Statutory Trust Needs Collection Agency License

Md. App. Holds Debt Buyer Statutory Trust Needs Collection Agency License

The Court of Special Appeals of Maryland held that a foreclosure proceeding was subject to state law collection agency requirements, and therefore that a statutory trust that owned a consumer mortgage loan was required to hold a collection agency license prior to proceeding with foreclosure.