B2B Compliance Guide

Commercial Debt Collection in Maryland

Everything you need to know about collecting B2B debts in Maryland. Statute of limitations, licensing requirements, and how AgentCollect keeps you compliant automatically.

3 Years
Statute of Limitations (all contracts)
OCFR License
Required for 3rd-party collectors
8am–9pm
Permitted Contact Hours (ET)
UCC Article 2
Governs Commercial Transactions

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 TypeTime LimitCode Section
Written contract3 yearsMd. Code, Cts. & Jud. Proc. §5-101
Oral contract3 yearsMd. Code, Cts. & Jud. Proc. §5-101
Open account (invoices)3 yearsMd. Code, Cts. & Jud. Proc. §5-101
Account stated3 yearsMd. Code, Cts. & Jud. Proc. §5-101
Promissory note (under seal)12 yearsMd. 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

RequirementHow AgentCollect Handles It
Contact hours (8am–9pm ET)AI agents auto-detect timezone from area code. Never calls outside permitted hours.
Validation noticeAutomatically sent within 30 days of first contact with all required disclosures.
3-year SOL — critical alertsMaryland accounts flagged at 2.5 years — aggressive early warning before the 3-year deadline.
Maryland OCFR licensingAgentCollect holds its own Maryland license. Clients don't need to obtain one.
Cease-and-desistImmediately stops all contact. Account moved to legal review queue.
No deceptive practicesAll AI communications are truthful, accurate, and professionally calibrated.

Maryland B2B Debt Collection FAQ

What is the statute of limitations for B2B debt collection in Maryland?
In Maryland, the statute of limitations for written contracts, oral contracts, and open accounts is uniformly 3 years (Md. Code, Cts. & Jud. Proc. §5-101). Act on overdue B2B invoices well before this deadline — it is one of the shortest SOLs in the US.
Do I need a license to collect B2B debts in Maryland?
Third-party debt collectors must be licensed through Maryland's OCFR. Original creditors collecting their own debts generally do not need a license. AgentCollect operates under its own Maryland OCFR license.
Can I charge interest on unpaid B2B invoices in Maryland?
Yes. Maryland allows contractual interest rates between businesses. The Maryland legal rate of interest is 6% per year where no rate is specified (Md. Code, Com. Law §12-102). Include interest terms in your contracts for maximum recovery.
What happens if the Maryland 3-year SOL expires on my commercial debt?
Once the 3-year statute of limitations expires, the debt is time-barred and cannot be enforced through the courts. The debtor can raise the SOL as an affirmative defense. The debt itself is not forgiven, but you lose the ability to sue. This is why early action on overdue accounts is critical in Maryland.

Collecting B2B debts in Maryland?

AgentCollect monitors Maryland's 3-year SOL and acts before it's too late. Zero compliance risk. Success-only fees.

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