466

LAWS OF MARYLAND

[Ch. 49

(ii) SEND TO THE BUYER A WRITTEN NOTICE WHICH
SETS FORTH IS A CLEAR AND DEFINITIVE MANNER THE SEASONS
WHY THE HOLDER BELIEVES THAT THE ACCOUNT WAS CORRECTLY
SHOWN IN THE STATEMENT.

(E)   HOLDER MAY CONTINUE COLLECTION.

NOTWITHSTANDING THE RECEIPT OF AN INQUIRY, THE
HOLDER MAY:

(1)    TRANSMIT TO THE BUYER REGULAR PERIODIC
BILLING STATEMENTS WHICH INCLUDE THE AMOUNT BELIEVED BY
THE BUYER TO BE A BILLING ERROR; AND

(2)    UNDERTAKE COLLECTION OF ANY AMOUNT WHICH
THE BUYER DOES NOT DISPUTE UNDER THIS SECTION.

(F)   HOLDER TO DESCRIBE PROCEDURE.

ON OR BEFORE THE FIRST BILLING STATEMENT FOR A NEW
ACCOUNT, THE HOLDER SHALL SEND TO THE BUYER A WRITTEN
NOTICE WHICH DESCRIBES THE PROCEDURES TO BE FOLLOWED BY A
BUYER UNDER THIS SECTION TO CLAIM A BILLING ERROR.

(G)   PROHIBITED COMMUNICATIONS.

ON RECEIPT OF AN INQUIRY UNDER THIS SECTION, UNTIL
THE HOLDER HAS COMPLIED WITH THE PROVISIONS OF THIS
SECTION, HE MAY NOT COMMUNICATE TO ANY PERSON, INCLUDING
ANY CREDIT BUREAU OR CREDIT REPORTING AGENCY, UNFAVORABLE
CREDIT INFORMATION CONCERNING THE BUYER AND BASED ON THE
BUYER'S FAILURE TO PAY THE AMOUNT BELIEVED BY HIM TO BE A
BILLING ERROR.

(H) CIVIL PENALTIES.

IF A HOLDER OF AN ACCOUNT RECEIVES A WRITTEN INQUIRY
FROM A BUYER UNDER THIS SECTION AND FAILS TO COMPLY WITH
THE REQUIREMENTS OF THIS SECTION, THEN:

(1)    IF THE DISPUTED AMOUNT IS NOT A BILLING
ERROR, THE HOLDER:

(i) MAY PROCEED TO COLLECT THE DISPUTED
AMOUNT; AND

(ii) SHALL FORFEIT THE RIGHT TO COLLECT ANY
FINANCE CHARGE ASSESSED ON THE ACCOUNT IN CONNECTION WITH
THE DISPUTED AMOUNT FROM THE DATE OF THE MAILING OF THE
WRITTEN INQUIRY TO THE DATE THE HOLDER COMPLIES WITH THIS
SECTION; OR

(2)    IF THE DISPUTED AMOUNT IS A BILLING
ERROR, THE HOLDER: