Maryland Collection Agency License Guide

In the state of Maryland, anyone operating as a collection agency is required to hold a Collection Agency License. Collection agency licenses are regulated and supervised by Maryland Commissioner of Financial Regulation.

New license applications and renewals must be submitted through the Nationwide Mortgage Licensing System (NMLS).

You can access the license applications online on the Maryland NMLS page. License types are divided into company, branch, and individual licenses. If you wish to engage in the collection agency business, complete the following forms:

• Collection Agency License application form available here.
  • Collection Agency Branch License application form available here.

Collection Agency License is required prior to obtaining a Branch license.

Note: Document links may be expired, as they are updated regularly. If you cannot access the links, please go directly to the Maryland NMLS page to find the application you need.

• Company Form (MU1): When applying through NMLS, the MU1 form acts as the application for the Collection Agency License.
  • Other Trade Name: If applicable, list any names (different from your legal name), that you operate under. Note that, if applicable, you are required to submit a trade name registration certificate issued by the MD Department of Assessments and Taxation.
  • Resident/Registered Agent: Information under this section must match the information provided on your Maryland records.
  • Primary Contact Employees: Provide information on the primary company contact and primary consumer complaint contact.
  • Disclosure Questions: Applicants are required to provide a detailed explanation and upload applicable documentation for each “yes” response.
  • Control Person (MU2) Attestation: Note that the completed individual MU2 form must be attested by a control person before submitting it with the MU1 form.
  • Business Plan: Upload a detailed business plan that includes marketing strategies, target markets, products, fee schedules, operating structures, and affiliate relationships. Under this section, applicants are also required to answer questions regarding MD business activity.
  • Certificate of Authority/Good Standing: The certificate must be state-issued and approved.
  • Company Staffing and Internal Policies: The submitted documentation must include staff information, organizational policies, enterprise-wide risk management information, and compliance management system/internal control information.
  • Document Samples: Provide copies of consumer agreements, representative contracts, disclosures, and any other documentation that is required by the State when engaging in business activities planned by the applicant.
  • Formation Document: Submit a state-certified copy of all applicable documentation and subsequent amendments:
    • Corp: Articles of Incorporation, By-laws, Shareholder Agreement, and/or IRS Form 2553
    • Corp: Articles of Incorporation, By-laws, Shareholder Agreement, and/or IRS Form 2553
    • Limited (Liability) Partnership: Certificate of Limited (Liability) Partnership and Partnership Agreement
    • PTR: Partnership Agreement
    • Unincorporated Association: Bylaws or constitution
    • Trust (Statutory): Certificate of Trust and Governing Instrument
  • Management Chart: Provide a chart demonstrating the applicant’s managers, officers, and directors.
  • Organizational Chart/Description: Upload a chart or description which includes the ownership percentage of direct owners, indirect owners, and subsidiaries and affiliates of the applicant.
  • Trust Account Authorization: Upload account authorization allowing the examination of trust accounts.
  • Individual Form (MU2): The following documentation must be uploaded in NMLS under the MU2 form.
    • Legal Name/Status Documentation: Documentation may include copies of passports, driver’s licenses, marriage certificates, etc
    • Memorandum of Tax Certification: Upload a certified memorandum showing all paid (or payment plan) tax obligations to the State.
    • Verification of Experience: Submit a detailed resume showing relevant job descriptions and performed duties.

For additional information on the above mentioned forms, visit the “Quick Guides” page.

All applicants are required to provide a surety bond. The bond must be furnished by a surety company that is authorized to do business in the state of Maryland. Note that for each additional location, the bond increases by $5,000.

• Bond Amount: $5,000

Fees are not refundable or transferable.

• MD Licensing Fee: $350

All Maryland Collection Agency license applications must be submitted through the NMLS.

For assistance or questions regarding the NMLS, contact their call center at (855) 665-7123.

For license-related information, you may contact the Commissioner of Financial Regulation licensing staff via email at finreg.licensing@maryland.gov, or by phone toll-free at (888) 784-0136 or (410) 230-6100.