Convenience Fees to Maryland Residents

It is recommended that you download and read the Notice from the Maryland Commissioner and follow closely future guidance from ACA on this subject.

The Maryland Commissioner of Financial Regulation cites the case law in Ashly Alexander, et. al. v. Carrington Mortgage Services, LLC, Case No. 20-2359 (4th Circuit, Jan. 19, 2022)

It appears that the Maryland Commissioner of Financial Regulation has interpreted the Ashly case law to include payments made to collection agencies. Recommendation is to talk to your compliance attorney for direction. However, it appears that collection agencies should  immediately stop charging convenience fees on any form of payment made by a Maryland resident on a consumer collection account. Further, if you have a vendor who processes your payments, you should make sure the vendor is not charging fees on Maryland consumer payments. 

D.C. City Council Passes Final Debt Collection Legislation Taking Effect in 2023

ACA International reports that on Tuesday, June 7, 2022, the DC council unanimously approved the “Protecting Consumers from Unjust Debt Collection Practices Amendment Act of 2022.  While there was action on a “permanent” bill on June 7, it won’t take effect until next year and the council essentially extended the current “temporary” legislation the industry has already been working under by passing a new temporary bill to bridge the gap until the new legislation takes effect in January. ACA is reviewing the final legislation and amendments.  Read more.