§ 12-907. License requirements

   (a) In general. -- To qualify for a license, an applicant shall satisfy the Commissioner that:

   (1) The applicant and each of the owners, officers, directors, and principals of the applicant has sufficient experience, character, financial responsibility, and general fitness to:

      (i) Engage in the business of providing debt management services;

      (ii) Warrant the belief that the debt management services business will be conducted lawfully, honestly, fairly, and efficiently; and

      (iii) Command the confidence of the public;

   (2) Each agent acting on behalf of the applicant to manage a trust account required under § 12-917 of this subtitle has sufficient experience, character, financial responsibility, and general fitness to:

      (i) Engage in the business of managing a trust account;

      (ii) Warrant the belief that the management of the trust account will be conducted lawfully, honestly, fairly, and efficiently; and

      (iii) Command the confidence of the public;

   (3) The applicant has a net worth computed according to generally accepted accounting principles of at least $ 50,000, plus an additional net worth of $ 10,000 for each location at which debt management services will be provided to consumers, up to a maximum of $ 500,000 as provided in subsection (b) of this section; and

   (4) Before providing counseling to a consumer, each debt management counselor employed by the applicant or the applicant's agent will receive comprehensive training in counseling skills, personal finance, budgeting, and credit and debt management.

(b) Net worth. -- The Commissioner may require a net worth of up to $ 500,000, subject to a consideration of the following:

   (1) The nature and volume of the business or proposed business of the applicant;

   (2) The amount, nature, quality, and liquidity of the assets of the applicant;

   (3) The amount and nature of the liabilities, including contingent liabilities, of the applicant;

   (4) The history of and prospects for the applicant to earn and retain income;

   (5) The quality of the operations of the applicant;

   (6) The quality of the management of the applicant;

   (7) The nature and quality of the person that has control of the applicant; and

   (8) Any other factor that the Commissioner considers relevant.

HISTORY: 2003, chs. 374, 375; 2005, ch. 574, § 2; 2008, chs. 605, 606.