Maryland B2B Debt Collection Rules
Maryland is a major commercial hub with the DC metro economy, biotech, cybersecurity, and government contracting sectors. Collecting unpaid B2B invoices requires careful attention to Maryland's short 3-year statute of limitations — the same as the consumer SOL — and OCFR licensing requirements.
Critical warning: Maryland's statute of limitations for all contracts — written, oral, and open accounts — is only 3 years under Md. Code, Cts. & Jud. Proc. §5-101. This is among the shortest in the US. Overdue B2B invoices must be acted on promptly or the debt becomes unenforceable in court.
How Long You Have to Collect
Maryland Courts and Judicial Proceedings — Limitation of Actions
The statute of limitations determines how long a creditor has to file a lawsuit. Maryland applies a uniform 3-year period to most commercial contract claims.
| Contract Type | Time Limit | Code Section |
|---|---|---|
| Written contract | 3 years | Md. Code, Cts. & Jud. Proc. §5-101 |
| Oral contract | 3 years | Md. Code, Cts. & Jud. Proc. §5-101 |
| Open account (invoices) | 3 years | Md. Code, Cts. & Jud. Proc. §5-101 |
| Account stated | 3 years | Md. Code, Cts. & Jud. Proc. §5-101 |
| Promissory note (under seal) | 12 years | Md. Code, Cts. & Jud. Proc. §5-102 |
Critical: Maryland's 3-year SOL for commercial invoices is one of the shortest in the US. The clock starts from the date payment was due. A partial payment or written acknowledgment restarts the limitations period.
Who Needs a License
Maryland Office of the Commissioner of Financial Regulation (OCFR)
Maryland requires third-party debt collectors to be licensed through the Office of the Commissioner of Financial Regulation (OCFR).
- Third-party collectors must hold a Maryland Collection Agency license via OCFR
- Original creditors collecting their own debts generally do not need a license
- License requires application, background check, bond, and OCFR approval
- Annual renewal required
- Maryland has strong enforcement — violations can result in license revocation and civil liability
How AgentCollect Handles This
- AgentCollect operates under its own Maryland OCFR license — you don't need to obtain one
- Our partnered attorneys are licensed and barred in Maryland
- All communications include required disclosures
- Licensing status is verified and renewed annually
Laws That Apply to B2B Collections
Maryland Consumer Debt Collection Act — Limited B2B Application
The Maryland Consumer Debt Collection Act (Md. Code, Com. Law §14-201 et seq.) primarily applies to consumer debts. Its application to pure B2B transactions is limited, but commercial collectors must avoid conduct that could be characterized as harassing, oppressive, or deceptive.
- No false, deceptive, or misleading representations about the debt
- No threats of legal action not intended to be taken
- No harassment or abusive communication practices
- Maryland AG enforces commercial fraud complaints
UCC Article 2 — Commercial Transactions
The Uniform Commercial Code governs most B2B transactions in Maryland, treating both parties as sophisticated commercial entities.
- Governs sale of goods between businesses
- Allows contractual modification of remedies and limitations
- Permits higher interest rates than consumer transactions
- Commercial reasonableness standard applies
Automatic Maryland Compliance
| Requirement | How AgentCollect Handles It |
|---|---|
| Contact hours (8am–9pm ET) | AI agents auto-detect timezone from area code. Never calls outside permitted hours. |
| Validation notice | Automatically sent within 30 days of first contact with all required disclosures. |
| 3-year SOL — critical alerts | Maryland accounts flagged at 2.5 years — aggressive early warning before the 3-year deadline. |
| Maryland OCFR licensing | AgentCollect holds its own Maryland license. Clients don't need to obtain one. |
| Cease-and-desist | Immediately stops all contact. Account moved to legal review queue. |
| No deceptive practices | All AI communications are truthful, accurate, and professionally calibrated. |
Maryland B2B Debt Collection FAQ
Collecting B2B debts in Maryland?
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