Section 12-907 - License requirements. - Maryland Statutes

§ 12-907. License requirements.
 

(a)  In general.- To qualify for a license, an applicant shall satisfy the Commissioner that: 

(1) The applicant and each of the owners, officers, directors, and principals of the applicant has sufficient experience, character, financial responsibility, and general fitness to: 

(i) Engage in the business of providing debt management services; 

(ii) Warrant the belief that the debt management services business will be conducted lawfully, honestly, fairly, and efficiently; and 

(iii) Command the confidence of the public; 

(2) Each agent acting on behalf of the applicant to manage a trust account required under § 12-917 of this subtitle has sufficient experience, character, financial responsibility, and general fitness to: 

(i) Engage in the business of managing a trust account; 

(ii) Warrant the belief that the management of the trust account will be conducted lawfully, honestly, fairly, and efficiently; and 

(iii) Command the confidence of the public; 

(3) The applicant has a net worth computed according to generally accepted accounting principles of at least $50,000, plus an additional net worth of $10,000 for each location at which debt management services will be provided to consumers, up to a maximum of $500,000 as provided in subsection (b) of this section; and 

(4) Before providing counseling to a consumer, each debt management counselor employed by the applicant or the applicant's agent will receive comprehensive training in counseling skills, personal finance, budgeting, and credit and debt management. 

(b)  Net worth.- The Commissioner may require a net worth of up to $500,000, subject to a consideration of the following: 

(1) The nature and volume of the business or proposed business of the applicant; 

(2) The amount, nature, quality, and liquidity of the assets of the applicant; 

(3) The amount and nature of the liabilities, including contingent liabilities, of the applicant; 

(4) The history of and prospects for the applicant to earn and retain income; 

(5) The quality of the operations of the applicant; 

(6) The quality of the management of the applicant; 

(7) The nature and quality of the person that has control of the applicant; and 

(8) Any other factor that the Commissioner considers relevant. 
 

[2003, chs. 374, 375; 2005, ch. 574, § 2; 2008, chs. 605, 606.]