Consumer Protection - Unsolicited Loans, the official text

WES MOORE, Governor                                       Ch. 316

Chapter 316

                                     (Senate Bill 582)

AN ACT concerning
                              Consumer Protection – Unsolicited Loans

FOR the purpose of prohibiting a creditor person from sending a check or other negotiable
         instrument to an individual under certain circumstances; establishing that an
         individual who receives a check or other negotiable instrument is not liable for the
         amount of the check or negotiable instrument under certain circumstances; and
         generally relating to extensions of consumer credit.

BY adding to
         Article – Commercial Law
         Section 14–1330
         Annotated Code of Maryland
         (2025 Replacement Volume)

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

             Article – Commercial Law

14–1330.

        (A) IN THIS SECTION, “CREDITOR” MEANS A PERSON THAT ENGAGES IN

WHOLE OR IN PART IN THE BUSINESS OF MAKING LOANS OR OTHER EXTENSIONS OF

CREDIT FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES THIS SECTION DOES
NOT APPLY TO A PERSON THAT SENDS A TO AN INDIVIDUAL:

                (1) A CONVENIENCE CHECK TO AN INDIVIDUAL FOR THE SOLE
PURPOSE OF ACCESSING AN EXISTING CREDIT LINE OF THE INDIVIDUAL; OR

                (2) A PRESCREENED FIRM OFFER OF UNSECURED CREDIT SUBJECT TO
REGULATION UNDER THE FEDERAL FAIR CREDIT REPORTING ACT.

        (B) A CREDITOR PERSON MAY NOT SEND A CHECK OR OTHER NEGOTIABLE
INSTRUMENT TO AN INDIVIDUAL IF:

                (1) (I) THE CHECK OR OTHER NEGOTIABLE INSTRUMENT IS SENT
IN CONNECTION WITH AN OFFER TO EXTEND SECURED CREDIT TO THE INDIVIDUAL;

AND

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Ch. 316  2026 LAWS OF MARYLAND

                (2) (II) THE INDIVIDUAL HAS NOT SUBMITTED AN APPLICATION

FOR OR OTHERWISE REQUESTED THE EXTENSION OF SECURED CREDIT BEFORE

RECEIVING THE CHECK OR OTHER NEGOTIABLE INSTRUMENT; OR

                (2) THE CHECK OR OTHER NEGOTIABLE INSTRUMENT IS SENT AS
PART OF AN UNSOLICITED OFFER TO PURCHASE REAL PROPERTY.

        (C) AN INDIVIDUAL WHO IS SENT A CHECK OR OTHER NEGOTIABLE
INSTRUMENT IN VIOLATION OF SUBSECTION (B) OF THIS SECTION IS NOT LIABLE

FOR THE AMOUNT OF THE CHECK OR OTHER NEGOTIABLE INSTRUMENT UNLESS THE
INDIVIDUAL ACTUALLY RECEIVES AND NEGOTIATES THE CHECK OR OTHER

NEGOTIABLE INSTRUMENT.

        (D) A CREDITOR PERSON THAT VIOLATES THIS SECTION IS GUILTY OF A
MISDEMEANOR AND ON CONVICTION SUBJECT TO A FINE NOT EXCEEDING $500.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2026.

Approved by the Governor, April 28, 2026.

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