Maryland changes judicial rules to protect consumers from unjust debt collection

January 13, 2012

Maryland: A new year brought a new set of rules to Maryland's courts regarding judgements against debtors. The Maryland Court of Appeals made the ruling which requires debt collectors to present more proof before obtaining a judgement.

Previously, debt collectors or buyers often needed only a person's name, last known address and Social Security number to obtain a judgement against that person. According to the court, "debt buyers sue a person they believe to be the debtor, knowing from experience that the defendant often does not file a notice of intention to defend or appear for trial." However, if the alleged debtors were to defend themselves against the claims, they would typically win, due to unreliable or insufficient documentation on the side of their accusers.

The problem stems from the practices of debt buyers, who purchase debt from the original creditors at a fraction of the amount owed and may re-sell it to other debt buyers. This can lead to confusion and misinformation. The new rules require debt buyers to prove that the debt was purchased from the original creditor. According to Attorney Andrew White, who has dealt with many of these types of cases, "The ruling represents a judicial distrust of affidavits submitted by debt companies."