Sales Finance Companies - Financial Regulation
Last reviewed or updated: July 1, 2023
A Sales Finance company engages, whether by purchase, discount, pledge, loan, or otherwise, in the business of acquiring, investing in, or lending money or credit on the security of any interest in (1) installment sale agreements made between other parties; (2) retail credit accounts (defined in Md. Code Ann., Com. Law §12-501), made between other parties; or (3)secured home improvement (defined in Md. Code Ann., Bus. Reg. § 8-101) transactions, made between other parties. Refer to Md. Ann. Code, Fin. Inst. §11-401 et seq., for legal requirements.
This license is required for the principal executive office of any person (defined in Md. Code Ann., Fin. Inst. §11-401) engaging in business as a sales finance. For more detailed information on this license type please proceed to the NMLS Resource Center.
License Requirements and Fees
Effective July 1, 2023, individual licenses for locations other than the principal executive office and for self-service financial kiosks are not required and will not be issued. Maryland business may be conducted at these locations under the license issued for the principal executive office if they are disclosed to the Commissioner. To disclose these locations, the form below, or a list in substantially similar form, should be prepared and uploaded to NMLS in accordance with the instructions on the form. A new form must be uploaded whenever an additional location is opened, closed, or moved, or if there is a change in a trade name used at an additional location.
Laws, Rules, and Regulations
Applicants and licensees are expected to be knowledgeable about and in compliance with the Consumer Loan Law, and any other applicable State or Federal statutes, rules, and regulations. Maryland laws, rules, and regulations can be found by accessing the Annotated Code of Maryland and Rules and Code of Maryland Regulations (COMAR). Certain relevant Maryland laws, rules, and/or regulations include (Note: this is not a comprehensive list):
- Maryland Code, Commercial Law Article, Title 12, Subtitle 5 (Retail Credit Accounts)
- Maryland Code, Commercial Law Article, Title 12, Subtitle 6 (Retail Installment Sales)
- Maryland Code, Financial Institutions Article, Title 11, Subtitle 4 (Sales Financing Companies – Licensing Provisions)
- COMAR 09.03.04 (Retail Installment Sellers)