What types of collection practices are illegal?

In Maryland, collection practices that are deemed illegal are those that are in violation of the Maryland Collection Agency Licensing Act. This Act makes it illegal for collection agencies, or any person or business acting as a collection agency, to collect or attempt to collect a debt without registering with the Commissioner of Financial Regulation. Other illegal collection practices include threats of physical or economic harm, disclosing personal information to third parties without consent, harassment, and intimidation. Debt collectors are also prohibited from making false statements, such as claiming that legal action will be taken when there are no such plans. Deceiving collectors, such as by falsely claiming that the consumer has paid off a debt, could also be illegal. It is also illegal for debt collectors to engage in unfair practices, such as demanding excessively high payments or attempting to collect more than what is legally owed. Additionally, they are prohibited from demanding postdated payments without prior notification, or from contacting the debtor at inconvenient times or places. Finally, under the Fair Debt Collections Practices Act, debt collectors must provide written notice to the debtor within five days of the initial contact that includes the amount of the debt, the name of the creditor, and an explanation of the rights of the consumer. Failure to do so can lead to legal action.

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What types of collection practices are illegal?

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