Maryland Debt Collection Laws: Your Rights Beyond the FDCPA

In Maryland, the most important thing to know is that your protections do not stop at the federal Fair Debt Collection Practices Act (FDCPA). Maryland has its own statute, the Maryland Consumer Debt Collection Act (MCDCA), codified at Commercial Law § 14-201 through § 14-204, and it is broader than federal law in one critical way: it applies to anyone collecting a consumer debt, including the original creditor. The federal FDCPA generally regulates only third-party debt collectors and debt buyers, so a bank, hospital, or store collecting its own account is usually outside it. Under Maryland's MCDCA, that same original creditor is bound by the rules. On top of that, most third-party collection agencies operating in Maryland must hold a state license, and the general statute of limitations to sue on a consumer contract debt is three years.

Maryland's own debt-collection statute (the MCDCA)

The MCDCA lists conduct that is flatly prohibited when collecting or attempting to collect an alleged debt. Among other things, a collector in Maryland may not:

• Use or threaten force or violence against you or your property.
• Threaten criminal prosecution when no basis for it exists.
• Disclose or threaten to disclose information that affects your reputation for creditworthiness with knowledge that the information is false.
• Contact your employer about the debt before obtaining a judgment, except to verify your employment, locate you, or garnish wages after judgment.
• Contact you with a frequency, at unusual hours, or in a manner that can reasonably be expected to abuse or harass you.
• Use obscene or grossly abusive language.
• Claim, attempt, or threaten to enforce a right with knowledge that the right does not exist.
• Use a communication that simulates legal or judicial process, or that falsely appears to be from a government agency or attorney.

Maryland also tied its statute directly to the federal one. Effective October 1, 2018, the General Assembly added a provision making it a violation of the MCDCA for a collector to engage in any conduct that violates the federal FDCPA's substantive prohibitions. In practice that means a single act of harassment or a false statement can be both a federal FDCPA violation and a Maryland MCDCA violation, giving you state-law remedies in Maryland courts even against an original creditor that the FDCPA would not reach.

Why the MCDCA's remedies matter

Under Commercial Law § 14-203, a collector who violates the MCDCA is liable for any damages you proximately sustained, and Maryland expressly allows recovery for emotional distress or mental anguish with or without accompanying physical injury. That is a meaningful difference from many ordinary tort claims, where emotional-distress damages are hard to get without a physical injury. It means Maryland consumers can pursue compensation for the stress and anxiety abusive collection causes, not just out-of-pocket losses. A successful FDCPA claim, by comparison, allows actual damages plus statutory damages up to $1,000 and attorney's fees under federal law; pairing the two statutes can strengthen your case.

The licensing requirement: collectors must be licensed

Maryland is a licensing state. Under the Maryland Collection Agency Licensing Act (MCALA), Business Regulation § 7-101 and following, a collection agency must be licensed by the State Collection Agency Licensing Board, which is administered by the Office of the Commissioner of Financial Regulation within the Maryland Department of Labor. This requirement reaches debt buyers, not just traditional agencies: a company that buys defaulted consumer debt and then collects it generally must be licensed. Litigation in Maryland over the past several years has confirmed that unlicensed collection activity can have consequences, including challenges to judgments obtained by collectors that were not properly licensed when they sued. If a company is dunning you, you can ask whether it holds a Maryland collection agency license and verify it through the Commissioner of Financial Regulation. An unlicensed collector pursuing you may be acting unlawfully.

The statute of limitations on collecting a debt

The time a creditor or collector has to sue you on most consumer debts in Maryland is governed by Courts and Judicial Proceedings § 5-101, which sets a general three-year limitations period for ordinary contract claims. Some obligations carry longer periods: a contract or instrument "under seal" (a specialty) can carry a twelve-year period under § 5-102, and a money judgment in Maryland is enforceable for twelve years and can be renewed. Once the three-year clock has run on a standard consumer contract debt, the debt is "time-barred," meaning a collector cannot win a lawsuit if you raise the statute of limitations as a defense. The debt does not vanish, and a collector may still ask you to pay, but be careful: making a payment or a written promise to pay can restart the clock. Because the correct period depends on the type of debt and its terms, confirm your specific deadline before relying on it.

Wage garnishment: Maryland versus the federal cap

If a collector gets a judgment, federal law (the Consumer Credit Protection Act) caps wage garnishment at the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Maryland adds its own protection under Commercial Law § 15-601.1. In most Maryland counties, the amount exempt from garnishment is the greater of 75% of your disposable wages or a set weekly dollar figure ($145 per week multiplied by the number of weeks the wages were earned, as of 2026). In four counties on the Eastern Shore (Caroline, Kent, Queen Anne's, and Worcester), the federal 30-times-minimum-wage standard applies instead. Because these figures and county rules can change, confirm the current numbers with the Maryland Judiciary or the Attorney General's office before calculating what a creditor can take.

Debt buyers and lawsuit documentation

Maryland court rules require collectors suing on assigned consumer debt to back up their claims. In District Court collection cases, the rules governing affidavit judgments require a plaintiff to attach documentation supporting the debt, including, for purchased debt, evidence of the chain of ownership showing the plaintiff actually owns your account. If you are served with a collection lawsuit, do not ignore it. Filing a response (a "notice of intention to defend") preserves your defenses, including lack of standing, improper documentation, or the statute of limitations. Ignoring the suit typically results in a default judgment, after which garnishment and bank levies become possible.

How to file a complaint with the Maryland Attorney General

Maryland's consumer watchdog is the Consumer Protection Division of the Office of the Attorney General. It accepts complaints about abusive, deceptive, or unlawful debt collection and can mediate disputes, and patterns of misconduct can feed broader enforcement actions. To file, gather your documentation first: collection letters, account statements, a log of calls (dates, times, what was said), voicemails, and any threats or false statements. Then submit a written complaint through the Attorney General's Consumer Protection Division, which offers an online complaint form and a consumer hotline. For problems tied to licensing, such as an unlicensed collector, you can also complain to the Office of the Commissioner of Financial Regulation, which oversees the State Collection Agency Licensing Board. Separately, federal complaints can go to the Consumer Financial Protection Bureau and the Federal Trade Commission.

Verify before you act

Debt-collection statutes, garnishment figures, and licensing rules change, and the right answer often turns on the type of debt and where you live in Maryland. Confirm the current law through the Maryland Office of the Attorney General's Consumer Protection Division, the Office of the Commissioner of Financial Regulation, and the Maryland Judiciary's self-help resources before making decisions about a debt, a lawsuit, or a garnishment. When the stakes are high, consider consulting a Maryland consumer-protection attorney; the MCDCA's attorney's-fee and damages provisions mean many will evaluate a strong case.

Official Maryland Sources

This page is based on Maryland law. Limits and deadlines change — verify the current details directly with the official Maryland sources below. This is general legal information, not legal advice.

• Office of the Attorney General of Maryland, Consumer Protection Division — official Maryland agency.
• File a Consumer/Business Complaint - Maryland Attorney General Consumer Protection Division
• Maryland Commercial Law Code, Title 13 Consumer Protection Act, Section 13-301 (Unfair, Abusive, or Deceptive Trade Practices)

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Maryland’s own rules.