ROBERT L. EHRLICH, JR., Governor

Ch. 375

Article - Financial Institutions

Section 12-901 through 12-930 12-931, inclusive, to be under the new subtitle
"Subtitle 9. Maryland Debt Management Services Act"

Annotated Code of Maryland

(1998 Replacement Volume and 2002 Supplement)

BY repealing and reenacting, with amendments,
Article - Financial Institutions
Section 12-905
Annotated Code of Maryland

(1998 Replacement Volume and 2002 Supplement)
(As enacted by Section 1 of this Act)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

[14-1316.

(a)     In this section, "debt adjusting" means the making of a contract, expressed
or implied, with a debtor and another person engaged in the debt adjusting business
by which the debtor agrees to pay a certain amount of money periodically to the other,
who for consideration distributes the money among specified creditors in accordance
with an agreed plan.

(b)     A person may not engage in the business of debt adjusting.

(c)     A person who violates this section is guilty of a misdemeanor and on
conviction is subject to imprisonment not exceeding 6 months or a fine not exceeding
$500 or both.

(d)     This section does not apply to the following when engaged in the regular
course of their respective businesses and professions:

(1)     A lawyer;

(2)     A bank or fiduciary, authorized to transact business in this State and
perform credit and financial adjusting service in the regular course of its principal
business;

(3)     A title insurer or abstract company, while doing an escrow business;

(4)     A judicial officer or a person acting under a court order;

(5)     A nonprofit, religious, fraternal, or cooperative organization that
offers debt management service exclusively for members, if a charge is not made and
a fee is not imposed;

(6)     A certified public accountant; and

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