Maryland Debt Collection Laws: What Collectors Can't Do to You

Maryland debt collectors violate state law roughly 15,000 times per year, according to Consumer Financial Protection Bureau complaint data. Most people ignore these violations because they don't know their rights.

You're not required to tolerate harassment. The Maryland Consumer Debt Collection Act gives you specific protections and the right to sue collectors who break them. This includes rules about when they can call, what they can say, and how they can threaten you.

What the Maryland Consumer Debt Collection Act Prohibits

The MCDCA covers both debt buyers and original creditors. Unlike federal law, Maryland doesn't let original creditors off the hook. If Bank of America or Capital One is collecting on your credit card, they follow the same rules as a third-party agency.

Collectors in Maryland cannot:

• Call you before 8 a.m. Or after 9 p.m. Unless you specifically agree to calls outside those hours in writing.
• Call repeatedly to harass you. There's no magic number, but courts have found 10+ calls in a week excessive.
• Use obscene or profane language. This includes threats of violence or any language meant to intimidate.
• Threaten criminal prosecution. Owing money is not a crime. Telling you otherwise is illegal.
• Threaten to harm your reputation. This includes threats to tell your employer, neighbors, or family about the debt.
• Use deception. They can't pretend to be attorneys, government officials, or anyone else.

The statute is codified at Maryland Commercial Law § 14-202. If a collector breaks these rules, you can sue them under § 14-203 for actual damages, emotional distress, and attorney fees.

How to Prove a Collector Violated Maryland Law

Document everything. You need evidence to win a case or force a settlement.

Keep a call log. Write down the date, time, phone number, and what was said. If they call at 6 a.m., note it. If they call six times in one day, note it.

Save voicemails. Most phones let you export voicemails to email. Do it immediately. Courts accept these as evidence.

Save letters and texts. Any written communication is evidence. Don't throw it away.

Record calls if possible. Maryland is a two-party consent state, meaning you need permission to record. But collectors often start calls with "this call may be recorded." That's consent. If you hear that, you can record too.

Once you have evidence, you can file a complaint with the Maryland Attorney General's Consumer Protection Division or sue directly in court.

Filing a Complaint with the Consumer Protection Division

The Attorney General's office investigates debt collector violations. File online at oag.state.md.us. You'll need to describe what happened and upload any evidence you have.

The division doesn't act as your attorney, but they can pressure the collector to stop. If they find a pattern of violations, they can sue the company on behalf of Maryland consumers.

Suing a Debt Collector in Maryland Court

You can also sue directly. Maryland law lets you recover:

• Actual damages (any money you lost)
• Damages for emotional distress
• Attorney fees if you win

You don't need to prove you lost money. Courts have awarded damages for distress alone when collectors call 20+ times or threaten arrest.

Most consumer attorneys take these cases on contingency. The collector pays your lawyer if you win, so you pay nothing upfront.

Federal Law Also Protects You: The Fair Debt Collection Practices Act

Maryland law works alongside the Fair Debt Collection Practices Act. The FDCPA is federal law that applies everywhere. It gives you additional rights:

• The right to dispute the debt. Send a written dispute within 30 days of the first contact, and the collector must verify the debt before continuing.
• The right to stop contact. Send a cease-and-desist letter, and the collector can only contact you to confirm they're stopping or to tell you about a lawsuit.
• The right to sue for violations. You can recover up to $1,000 in statutory damages, plus actual damages and attorney fees.

One catch: the FDCPA only covers third-party collectors, not original creditors. That's why Maryland law is stronger—it covers everyone.

Statute of Limitations on Debt in Maryland

Even if a debt is real, collectors can't sue you forever. Maryland law sets time limits called statutes of limitations. Once the deadline passes, the debt is "time-barred."

Collectors can still ask for payment on time-barred debt, but they can't sue you. If they threaten to sue, that's illegal.

Maryland's statute of limitations varies by debt type:

• Credit cards: 3 years. Most credit card agreements are governed by the state where the bank is located. If you're not sure, assume 3 years.
• Written contracts: 3 years. This includes personal loans with a signed agreement.
• Oral contracts: 3 years. Verbal agreements or informal loans.
• Auto loans: 4 years. Because cars are secured collateral, Maryland treats these differently.
• Judgments: 12 years. Once a collector sues and wins, the judgment is enforceable for 12 years and can be renewed.

The clock starts on your last payment or last account activity. If you make a payment, even $5, the clock resets.

What to Do If a Collector Sues You on a Time-Barred Debt

File an answer. The statute of limitations is an "affirmative defense," meaning the court won't apply it unless you bring it up. If you ignore the lawsuit, you lose by default even if the debt is time-barred.

State in your answer: "This debt is barred by Maryland's statute of limitations under [cite the relevant statute]." If the debt is older than 3 years (or 4 for auto loans), the judge will dismiss the case.

If you're sued and need help responding, check our guide on whether bankruptcy is the right move or how to fight the lawsuit directly.

What Happens If You Ignore a Debt Collector

Ignoring calls doesn't make debt go away. If you owe the money and don't respond, here's the likely timeline:

1. 30-60 days past due: The original creditor calls and sends letters.
2. 90-180 days past due: The account gets charged off and sold to a debt buyer or sent to a collection agency.
3. 6-12 months past due: The collector may sue you.
4. After they win: The collector gets a judgment and can garnish your wages or bank account.

Maryland allows wage garnishment up to 25% of your disposable income. Your bank account can be frozen except for certain protected funds like Social Security.

You have options before it gets to garnishment. Once you're sued, filing bankruptcy can stop the lawsuit and eliminate the debt entirely.

How to Stop Debt Collector Calls in Maryland

You have three options:

1. Send a Cease-and-Desist Letter

Mail a letter stating: "I am invoking my right under the Fair Debt Collection Practices Act to cease all communication regarding this debt." Send it certified mail with return receipt.

Once they receive it, they can only contact you to confirm they're stopping or to notify you of a lawsuit. This doesn't erase the debt, but it stops the calls.

2. Dispute the Debt

If you don't think you owe the money, send a written dispute within 30 days of the first contact. The collector must stop collection efforts until they send you proof of the debt.

Many collectors can't prove the debt. Especially debt buyers who purchased old accounts in bulk and don't have original contracts or statements.

3. Negotiate a Settlement or Payment Plan

If you owe the debt and can pay something, negotiate. Most collectors will settle for 30-50% of the balance. Get the agreement in writing before you pay.

Never give a collector access to your bank account. Pay with a cashier's check or money order, and keep proof of payment.

When to Consider Bankruptcy

If you're drowning in multiple debts, stopping one collector won't solve the problem. Chapter 7 bankruptcy eliminates unsecured debt like credit cards, medical bills, and personal loans in about 4 months.

Filing stops all collection activity immediately. No more calls, no lawsuits, no garnishments. Most people keep their car, house, and retirement accounts.

Maryland's bankruptcy exemptions are generous. You can protect up to $28,950 in home equity, $5,000 in a car, and unlimited retirement accounts. Check if you qualify using our bankruptcy screener.

Resources for Maryland Debtors

If you need legal help or want to learn more:

• Maryland Attorney General Consumer Protection Division: File complaints or get information at oag.state.md.us.
• Maryland Legal Aid: Provides free legal help to low-income residents. Apply at mdlab.org.
• National Consumer Law Center: Publishes detailed guides on debt collection and consumer rights at nclc.org.

You can also consult a consumer rights attorney. Most offer free consultations and work on contingency for debt collection cases.

Next Steps

Start by documenting every violation. If a collector has broken Maryland law, you have leverage to negotiate or sue.

If the debt is legitimate and you're struggling to pay, explore your options before they sue. Once a judgment hits, your choices shrink. Consider settlement, payment plans, or bankruptcy depending on your situation.

If you're facing multiple debts and lawsuits, take our bankruptcy screener to see if filing would give you a fresh start. It's free, takes 2 minutes, and no one will call you unless you want them to.