Blackstone v. SharmaAnnotate this Case
At issue in this consolidated appeal was whether the Maryland Collection Agency Licensing Act (MCALA), as revised by a 2007 departmental bill, was constrained to the original scope of collection agencies seeking consumer claims or whether the revised statutory language required principal actors of Maryland’s mortgage market to obtain a collection agency license.
In 2007, the Department of Labor, Licensing, and Regulation requested a department bill to revise the definition of collection agencies required to obtain the MCALA license. The enacted departmental bill changed MCALA’s definition of “collection agencies” to include a person who engages in the business of “collecting a consumer claim the person owns if the claim was in default when the person acquired it[.]” The circuit courts below dismissed the foreclosure actions at issue in this appeal, concluding that foreign statutory trusts acting as a repository for defaulted mortgage debts were required to obtain a MCALA license before its substitute trustees filed the foreclosure actions. The Supreme Judicial Court reversed, holding that the foreign statutory trusts did not fall under the definition of “collection agencies” that are licensed and regulated by MCALA, and therefore, the foreign statutory trusts were not required to obtain a license under MCALA before the substitute trustees instituted foreclosure proceedings on their behalf.