issuing checks, drafts, and money orders for a tee
Persons who wish to transact such business in
Maryland must procure an annual license from the
Commissioner All such persons must report peri-
odically to the Commissioner on agent charges,
financial structure, and other conditions relative to
their functions under the Law (Code Financial
Institutions Article, sees 12 401 through 12 424)
Eligible tax-exempt financial institutions may
apply to the Commissioner of Financial Regulation
to be supervised and examined by the Commis
sioner (Code Financial Institutions Article, sec
12 701) These institutions must be nonstock cor-
porations exempt from taxes under the Internal
Revenue Code (sec 501 (c)(3)), as amended, and
financial institutions engaged solely in extending
credit and loans to socially or economically disad-
vantaged businesses for their business and commer
cial development In addition, a majority and all
controlling members of such financial institutions
must be persons designated and approved by any
banking institution or national banking association
The office of the Commissioner nf Financial
Regulation also handles consumer complaints
against institutions under its jurisdiction
Appointed by the Secretary of Labor, Licensing,
and Regulation with the approval of the Governor,
the Commissioner of Financial Regulation holds
office at the pleasure of the Secretary (Code Fman
cial Institutions Article, sec 2-401)

BANKING BOARD

(410) 333-6808

The Banking Board was established in 1935
(Chapter 489, Acts of 1935) The Board advises the
Commissioner of Financial Regulation on any matter
concerning the business of any State banking instrtu
tion The Board also assists the Commissioner with
approval or disapproval of applications by banking
institutions and foreign banking corporations If the
Commissioner does not follow the Banking Board's
advice, the Commissioner must notify the Board m
writing of the reason for the action
The Board is composed of the Comptroller of
the Treasury and seven members appointed to
six year terms by the Governor with the advice of
the Secretary of Labor, Licensing, and Regulation
(Code Financial Institutions Article, sees 2-201
through 2 204)

CONSUMER. CREDIT REGULATION
The regulation of consumer credit began in
1939 under the jurisdiction of the Bank Commis
sioner (Chapter 741, Acts of 1939) It was re-
formed under the Administrator of Loan Laws in
1941 (Chapter 289, Acts of 1941) In 1970, the
office was renamed Commissioner of Small Loans
and, in 1974, Commissioner of Consumer Credit
(Chapter 402, Acts of 1970, Chapter 457, Acts of

1974) In 1996, these responsibilities were assigned
to the Commissioner of Financial Regulation
The Commissioner of Financial Regulation h
censes, registers, and regulates consumer loan corn
panics, sales finance companies, retail credit card
financing companies, installment loan lenders, debt
collectors, credit grantors, and mortgage brokers,
lenders, and servicers In addition, the Commis
sioner administers the Maryland Credit Services
Businesses Act, the Consumer Credit Reporting
Agencies Law, the Maryland Equal Credit Oppor
tumty Act, and the Denial of Credit Disclosure Act
The Commissioner has co Junsdictional authority
on unfair or deceptive trade practices and generally
enforces the consumer protection laws governing
credit To discover violations of the law, the office
regularly examines and investigates these compa
mes The office also maintains a complaint section
which answers telephone inquiries and investigates
complaints from consumers and the business corn
munity regarding irregularities or violations
Upon the filing of a written letter of complaint,
the Commissioner has authority to conduct an
investigation and, after a formal hearing, can issue
cease and desist orders, and award restitution. The
Commissioner also may suspend or revoke a license
upon finding an illegal activity (Code Financial
Institutions Article, sees 11 101 through 11 524,
Commercial Law Article, sees 12 514, 12 631,
12 916,12 1016,14 1218,14-1706.14 1911)

COLLECTION AGENCY LICENSING BOARD

H Robert Hergenroeder, Jr , Chair

501 St Paul Place
Baltimore, MD 21202—2272 (410) 333-6801

The Collection Agency Licensing Board began
as part of the office of the Commissioner of Con
sumer Credit in 1977 (Chapter 319,Acts of 1977)
In 1996, the Board was placed under the Commis
sioner of Financial Regulation
The Board regulates debt collection agencies It
issues, suspends, and revokes licenses, reprimands li
censees, and receives and investigates written corn
plaints from consumers It may hold a hearing on
allegations of violations of the Consumer Debt Collec
tion Act by a debt collection agency The Board also
mediates disputes between consumers and debt collec
uon agencies and may subpoena witnesses for atten
dance and testimony In the mediation process, it may
recommend monetary compensation to the consumer
The Board's five members are appointed to
four year terms by the Governor with Senate advice
and consent Chaired by the Commissioner of Fi
nancial Regulation, the Board serves without corn
pensation Authorization for the Board continues
until July 1, 2002 (Code Business Regulation Ar-
ticle, sees 7 201 through 7 206)