Maryland Credit Services Business Licensee Bond
Maryland Credit Services Business Licensee Bond Information
Credit Service Organizations operating in Maryland must furnish a $50,000 Credit Services Business Licensee Surety Bond for the benefit of any person who has a cause of action against the bonded principal for a violation of the Maryland Credit Services Business Act, Md. Code Ann., Com. Law III, Title 14, Subtitle 19 (“MCSBA”). The bond is mandated for those licensed or becoming licensed by the Commissioner of Financial Regulation (“Commissioner”) to engage in the business of credit services business in Maryland. The bond guarantees compliance with all provisions of the MCSBA and is continuous until cancelled.
Getting Your Maryland Business License or Registration
A Credit Service Business must be licensed and bonded in Maryland if the business sells, provides, performs, or represents that it can or will sell, provide, or perform, certain services in return for the payment of money or other valuable consideration with the objective of improving a consumer’s credit record, history, or rating and/or obtaining an extension of credit. This license authorizes the activities including consumer loan brokering, credit repair and non-mortgage loan modifications. See also Maryland Code Annotated, Commercial Law Article, §14-1901 et seq. for more information.
New license applicants must initiate applications through the Nationwide Mortgage Licensing System (NMLS) but supporting documentation should be sent to the Maryland Office of the Commissioner of Financial Regulation. Your Surety Bond will be filed electronically via NMLS in the amount of $50,000 by Surety Bonds Direct and our partner surety companies.
Following are the general steps required to secure your Maryland Credit Services Business License;
- Contact a surety company authorized to do business in Maryland such as Surety Bonds Direct to secure an electronic surety bond to be filed via NMLS in the amount of $50,000. Note: Changes in the number of branch locations affects the amount required for the surety bond. The amount of the Electronic Surety Bond submitted must be increased by $50,000 through NMLS for the additional branch location.
- Complete and submit the application for the license/registration Company Form (MU1) in NMLS.
- If the business operates under an “Other Trade Name”, upload a trade name registration certificate issued by the Maryland Department of Assessments and Taxation.
- The Resident Agent must be listed under the Resident/Registered Agent section of the Company Form (MU1) and must match the information currently on record with the state of Maryland.
- Provide a complete and detailed explanation and document upload for each “Yes” response to Disclosure Questions made by the company or related control persons (MU2).
- Complete the Individual Form (MU2) in NMLS. This form must be attested to by the applicable control person before it is able to be submitted along with the Company Form (MU1).
- Submit application investigation fee to the state.