Debt relief in Maryland: collection rules, time limits and your options
Updated November 9, 2026
Maryland at a glance (checked November 2026)
| Maryland | |
|---|---|
| Time limit to sue on credit cards and most consumer debts | 3 years; a later payment doesn't restart it |
| Wage garnishment for consumer debt | Up to 25% of take-home pay; weekly pay up to $450 is protected |
| State debt collection law | Maryland Consumer Debt Collection Act, which covers original creditors too |
| Who licenses debt collectors | State Collection Agency Licensing Board |
| Where to complain | Office of Financial Regulation, and the CFPB |
Debt collection rules in Maryland
Collection agencies need a license from the State Collection Agency Licensing Board, part of Maryland's Office of Financial Regulation. That includes debt buyers that collect or sue on the debts they buy. You can check a collector's license on NMLS Consumer Access.
The Maryland Consumer Debt Collection Act (Commercial Law § 14-201 and following) applies to creditors collecting their own debts as well as to collection agencies. It bans threats of violence or criminal charges, contacting your employer about the debt before a court judgment, and claiming a right the collector knows it doesn't have. It also makes a breach of the federal collection rules a violation of Maryland law.
The federal Fair Debt Collection Practices Act applies to third-party collectors too. They can't call before 8 a.m. or after 9 p.m., must send you a validation notice, and have to stop collecting if you dispute the debt in writing within 30 days, until they verify it.
How long creditors have to sue
Maryland gives creditors 3 years for most debts, including credit cards, personal loans and medical bills (Courts and Judicial Proceedings § 5-101). The clock usually starts when you default.
Maryland protects you more than most states once that time is up. A creditor or collector can't sue you on the debt, and a payment, a promise to pay or any other activity on the account doesn't restart the clock (§ 5-1202). A collector can still ask you to pay, but it can't take you to court.
If you're sued in Maryland District Court, file a Notice of Intention to Defend within the time the papers give you, usually 15 days. If you don't, the creditor can get a judgment without a trial.
What can be garnished in Maryland
A creditor with a judgment can take the lesser of 25% of your take-home pay or the amount you take home above $450 a week (Commercial Law § 15-601.1). The $450 is 30 times Maryland's $15 minimum wage, so a low paycheck is protected in full.
Child support and taxes follow separate rules. Social Security and other federal benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in Maryland
- Nonprofit credit counseling can roll your cards into one debt management plan, usually at lower rates. Maryland requires debt management companies to be licensed by the Office of Financial Regulation, so check before you sign up.
- Thinking about one loan to pay off your cards? Our debt consolidation calculator shows whether it would cost less than what you're paying now.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: Maryland makes you use its own exemption list rather than the federal one. A bankruptcy attorney can tell you what you would keep.
Where to get help or complain
- Maryland Office of Financial Regulation licenses collection agencies and takes complaints about them online or at 410-230-6077.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Maryland Legal Aid gives free civil legal help to people with low incomes.
- The People's Law Library of Maryland has free guides on debt collection lawsuits and garnishment.
General information about Maryland law, not legal advice. Checked November 2026.