Office of the Commissioner of Financial Regulation

 

2011 Maryland Debt Settlement Services Provider Consumer Activity Report Summary

 

Pursuant to Section 2 of Chapter 281 of the Acts of 2011, registered debt settlement providers are required to provide data and other information to the Commissioner of Financial Regulation. The annual reports cover the business conducted by the Registrants during the immediately preceding year. The law also directs the Commissioner to issue a report to the legislature on or before December 31, 2014 regarding recommended changes to the Maryland Debt Settlement Services Act, including whether to implement a licensing requirement and a cap on debt settlement fees. The data gathered in the annual reports is intended to inform these recommendations.

The attached spreadsheet (PDF document, 101KB, download Acrobat for free) contains summary analysis based on the first year of annual reports, submitted in the spring of 2012. The summary data covers all activity in 2011 for accounts initiated during the period from October 27, 2010 through December 31, 2011. Effective October 27, 2010, the FTC implemented the Telemarketing Sales Rule which fundamentally altered the nature of Debt Settlement Contracts by prohibiting up-front fees, among other changes. Information regarding contracts entered into prior to that date has been excluded from this and all subsequent analysis as the information will not be helpful in evaluating the industry going forward and formulating future recommendations.

The Division of Financial Regulation is in the process of revising the summary presentation for 2012 and years thereafter. Those results will be made available as soon as practicable. All comments or questions regarding this report may be directed to Mr. Michael Jackson, Director, Commissioner of Financial Regulation, 500 North Calvert Street, Suite 402, Baltimore, Maryland 21202 or by email to Michael Jackson.

2011 MD Debt Settlement Services Provider Consumer Activity Data Submission (PDF document, 101KB, download Acrobat for free)

 
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