Maryland legislation · 2026 Regular Session
Maryland SB582: Consumer Protection - Unsolicited Loans
Status: Signed into law, April 28, 2026
Prohibiting a person from sending a check or other negotiable instrument to an individual under certain circumstances; establishing that an individual who receives a check or other negotiable instrument is not liable for the amount of the check or negotiable instrument under certain circumstances; and providing that a person who violates the Act is guilty of a misdemeanor and on conviction is subject to a fine not to exceed $500.
What the bill says
An act concerning Consumer Protection - Unsolicited Loans FOR the purpose of prohibiting a creditor person from sending a check or other negotiable instrument to an individual under certain circumstances; establishing that an individual who receives a check or other negotiable instrument is not liable for the amount of the check or negotiable instrument under certain circumstances; and generally relating to extensions of consumer credit. BY adding to Article - Commercial Law Section 14-1330 Annotated Code of Maryland (2025 Replacement Volume).
From the enrolled text, May 5, 2026:
AN ACT concerning Consumer Protection - Unsolicited Loans FOR the purpose of prohibiting a creditor person from sending a check or other negotiable instrument to an individual under certain circumstances; establishing that an individual who receives a check or other negotiable instrument is not liable for the amount of the check or negotiable instrument under certain circumstances; and generally relating to extensions of consumer credit. BY adding to Article - Commercial Law Section 14-1330 Annotated Code of Maryland (2025 Replacement Volume) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article - Commercial Law 14-1330. (A) IN THIS SECTION, "CREDITOR" MEANS A PERSON THAT ENGAGES IN WHOLE OR IN PART IN THE BUSINESS OF MAKING LOANS OR OTHER EXTENSIONS OF CREDIT FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES THIS SECTION DOES NOT APPLY TO A PERSON THAT SENDS A TO AN INDIVIDUAL: (1) A CONVENIENCE CHECK TO AN INDIVIDUAL FOR THE SOLE PURPOSE OF ACCESSING AN EXISTING CREDIT LINE OF THE INDIVIDUAL; OR (2) A PRESCREENED FIRM OFFER OF UNSECURED CREDIT SUBJECT TO REGULATION UNDER THE FEDERAL FAIR CREDIT REPORTING ACT. (B) A CREDITOR PERSON MAY NOT SEND A CHECK OR OTHER NEGOTIABLE INSTRUMENT TO AN INDIVIDUAL IF: (1) (I) THE CHECK OR OTHER NEGOTIABLE INSTRUMENT IS SENT IN CONNECTION WITH …