1. (a) In this subtitle the following words have the meanings indicated.
2. (b) “Charge-off” means the act of a creditor that treats an account receivable or any other debt as a loss or an expense because payment is unlikely.
3. (c) “Charge-off balance” means the amount due on the account or debt at the time of charge-off.
4. (d) “Collector” means a person collecting or attempting to collect an alleged debt arising out of a consumer transaction.

5. (e) “Consumer debt” means a secured or an unsecured debt that:

   1. (1) Is for money owed or alleged to be owed; and
   2. (2) Arises from a consumer transaction.

6. (f)

   1. (1) “Consumer debt collection action” means any judicial action or arbitration proceeding in which a claim is asserted to collect a consumer debt.
   2. (2) “Consumer debt collection action” does not include an action brought under § 8-401 of the Real Property Article by a landlord or an attorney, a property manager, or an agent on behalf of a landlord.
7. (g) “Consumer transaction” means any transaction involving a person seeking or acquiring real or personal property, services, money, or credit for personal, family, or household purposes.
8. (h) “Creditor” means a person to whom a consumer debt is owed or alleged to be owed.

9. (i)

   1. (1) “Debt buyer” means a person that purchases or otherwise acquires consumer debt from an original creditor or from a subsequent owner of the debt.

   2. (2) “Debt buyer” does not include:

      1. (i) A check services company that acquires the right to collect on a paper or an electronic check instrument, including an automated clearing house item that has been returned unpaid to a merchant;

      2. (ii) A business entity that, in the business entity's ordinary course of business, does not purchase or otherwise acquire consumer debt from an original creditor or from a subsequent owner of the debt and acquired the consumer debt:

         1. 1. As a direct result of the business entity being the successor in a merger with the original creditor of the debt; or
         2. 2. Because the business entity purchased or otherwise acquired the original creditor in whole;
      3. (iii) A bank, credit union, or savings and loan association that acquired the consumer debt as a direct result of being the successor in a merger with another bank, credit union, or savings and loan association that had owned the consumer debt;
      4. (iv) A mortgage servicer that is licensed under Title 11, Subtitle 5 of the Financial Institutions Article, unless the mortgage servicer or a collector acting on the mortgage servicer's behalf collects or attempts to collect a deficiency balance or deficiency judgment in any way related to or arising from a foreclosure or short sale of real property that secured the mortgage loan;

      5. (v) A sales finance company or any other person that acquires consumer debt arising from a retail installment sale agreement if:

         1. 1. The sales finance company or other person acquired the debt before the first installment payment was due from the consumer; and
         2. 2. The retail installment sale agreement expressly stated that the consumer would be required to make the consumer's payments to that sales finance company or person;
      6. (vi) A bank, credit union, or savings and loan association that acquired from another bank, credit union, or savings and loan association, in the ordinary course of business, all of a specific type of consumer debt owned by the other bank, credit union, or savings and loan association except for consumer debt that had been charged off; or
      7. (vii) An attorney, a licensed debt collection agency, a property manager, or any other person that collects or attempts to collect consumer debt in an action under § 8-401 of the Real Property Article on behalf of an original creditor that is a residential rental property owner.
10. (j) “Debtor” means an individual who owes or is alleged to owe a consumer debt.

11. (k)

    1. (1) “Principal” means the unpaid balance of a debt or an obligation arising from a consumer transaction that is owed or alleged to be owed to the original creditor.
    2. (2) “Principal” does not include interest, fees, or charges added to the debt or obligation by the original creditor or any subsequent owners of a consumer debt.

Added by Acts 2016, c. 579, § 1, eff. Oct. 1, 2016. Amended by Acts 2025, c. 693, § 1, eff. Oct. 1, 2025; Acts 2025, c. 694, § 1, eff. Oct. 1, 2025.