Md. Code Regs. 09.03.02.05 - Unfair and Deceptive Trade Practices
A. Advertising.
(1) Each consumer loan licensee shall comply
with all provisions of Regulation Z, promulgated under the Federal Consumer
Credit Protection Act, Truth-in-Lending, that relate to the advertising of
credit terms.
(2) A consumer loan
licensee may not use blind advertisements, such as giving only telephone
numbers or box number addresses. A licensee may not advertise that any loan
business will be conducted at any place other than the licensed
address.
(3) A consumer loan
licensee may not advertise or otherwise communicate to any borrower that
payments will be waived for any contingency without also advising the borrower
that daily interest charges will continue during the waiver period, if this is
the fact.
B. Filing of
Suits and Legal Process. In connection with any debt arising out of a consumer
loan, a licensee may not file suit against a debtor in a foreign jurisdiction
when the debtor is domiciled and regularly employed in the State. This
prohibition extends to any proceedings in attachment against the
debtor.
C. Merchant Referral Loans.
(1) Loans may not be contracted for by a
licensee who knows that the borrower is purchasing the merchandise under duress
or misrepresentation connected with the financing of the merchandise.
(2) A licensee may not compel the borrower to
use the proceeds of the loan for the prospective purchase. A check will not be
made payable to the merchant, or endorsed payable to the merchant at the
direction of the licensee.
(3) A
licensee may not pay to or accept from a merchant anything of value for making
a loan to a borrower referred to the licensee by a merchant.
Notes
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