February 17, 2009
Licensed Maryland collection agencies have an ongoing obligation to update their application information with the Maryland Collection Agency Licensing Board (the "Board") when there has been a change to the information submitted to the Board.
A change in control of a licensed collection agency is an event that requires a licensee to update its application information with the Board. A change of control occurs when 10% or more of the ownership of an entity holding a license changes hands.
Prior to, but in no event later than, the date when a change in control occurs, a licensed collection agency must submit to the Board, under oath, a completed application-update form which includes, but is not limited to, the following information:
- The name, address and telephone number of the new controlling person of the licensee. If the new controlling person is a legal entity, include a list of the individual owners of that legal entity together with their addresses and telephone numbers.
- A completed character questionnaire for the new controlling person.
- Evidence that the licensee's surety bond has been amended, if necessary, to reflect the change in control. If no amendment to the surety bond is required by the issuer, a letter from the issuer stating that fact.
You can access the required Change in Control Update
Form online (Word document,
Word viewer for free).
If a licensed collection agency wishes to change entity type (for example, change from a corporation to a limited liability company), a new license will be required for the new entity. The old license should be surrendered.
Apply for a new license online.
Penalties for Violations of the Collection Agency Licensing Act
Persons violating the Act may be subject to an Order to Cease and Desist, official reprimand, license suspension or revocation, and/or fines. Md. Code Ann., Business Regulation BR §§ 7-205 and 7-308.
Please contact the Maryland Collection Agency Licensing Board at (410) 230-6079 with questions regarding changes in control and the related obligations to update application information.