MARYLAND COLLECTION AGENCY MANAGER
EXAMINATION| 300 COMPREHENSIVE
MULTIPLE-CHOICE QUESTIONS WITH ANSWERS
AND RATIONALES
SECTION 1: LICENSING REQUIREMENTS AND JURISDICTION (Questions 1-
40)
---
1. Which statute primarily governs collection agency licensing in Maryland?
A. Maryland Transportation Code, Title 3
B. Maryland Business Regulation Article, Title 7
C. Maryland Criminal Procedure Article, Title 2
D. Maryland Health Occupations Article, Title 8
Answer: B
Rationale: The Maryland Collection Agency Licensing Act (MCALA) is codified
in the Maryland Business Regulation Article, Title 7. This title establishes the
licensing framework, definitions, board authority, and regulatory
requirements for collection agencies operating in Maryland.
---
,2. Under Maryland law, a license is required for any person doing business as
a collection agency unless:
A. The agency collects only debts over $10,000
B. A specific statutory exemption applies
C. The agency operates outside Baltimore City
D. The agency has fewer than five employees
Answer: B
Rationale: Maryland law mandates licensure for collection agencies with only
narrow statutory exemptions. Exemptions include employees acting under a
licensed agency or under creditor supervision. There is no exemption based
on debt amount, location, or number of employees.
---
3. Which entity is responsible for regulating, licensing, and disciplining
collection agencies in Maryland?
A. Maryland Department of Transportation
B. State Collection Agency Licensing Board
C. Maryland Insurance Administration
D. Maryland Tax Authority
Answer: B
Rationale: The State Collection Agency Licensing Board, operating within the
Office of the Commissioner of Financial Regulation, oversees licensing,
supervision, enforcement, and disciplinary actions for collection agencies to
ensure compliance with Maryland law and consumer protection standards.
,---
4. What is the minimum surety bond requirement for a Maryland collection
agency license application?
A. $1,000
B. $5,000
C. $10,000
D. $25,000
Answer: B
Rationale: A surety bond of at least $5,000 is required as a financial guarantee
to ensure compliance with Maryland's collection agency regulations. The bond
must be furnished by a surety company authorized to do business in
Maryland.
---
5. Which of the following is NOT required as part of a Maryland collection
agency license application?
A. Certificate of Good Standing from the Maryland Department of Assessments
and Taxation
B. Surety bond
C. Federal tax exemption certificate
D. Fingerprinting for criminal background check
Answer: C
, Rationale: A federal tax exemption certificate is not a requirement for a
collection agency license. Required items include a Certificate of Good
Standing, a surety bond, and fingerprinting for background checks.
---
6. What is the purpose of fingerprinting in the Maryland collection agency
licensing process?
A. To verify handwriting style
B. To conduct a criminal background check
C. To determine financial assets
D. To assign license numbers
Answer: B
Rationale: Fingerprinting is used to conduct a criminal background check to
assess applicant suitability and integrity. The Board evaluates moral character
and fitness as part of the licensing determination.
---
7. A collection agency license in Maryland authorizes the licensee to:
A. Operate only in Baltimore City
B. Do business as a collection agency at each licensed location and under each
licensed name
C. Collect debts without any further regulatory oversight
D. Operate without disclosing additional locations
EXAMINATION| 300 COMPREHENSIVE
MULTIPLE-CHOICE QUESTIONS WITH ANSWERS
AND RATIONALES
SECTION 1: LICENSING REQUIREMENTS AND JURISDICTION (Questions 1-
40)
---
1. Which statute primarily governs collection agency licensing in Maryland?
A. Maryland Transportation Code, Title 3
B. Maryland Business Regulation Article, Title 7
C. Maryland Criminal Procedure Article, Title 2
D. Maryland Health Occupations Article, Title 8
Answer: B
Rationale: The Maryland Collection Agency Licensing Act (MCALA) is codified
in the Maryland Business Regulation Article, Title 7. This title establishes the
licensing framework, definitions, board authority, and regulatory
requirements for collection agencies operating in Maryland.
---
,2. Under Maryland law, a license is required for any person doing business as
a collection agency unless:
A. The agency collects only debts over $10,000
B. A specific statutory exemption applies
C. The agency operates outside Baltimore City
D. The agency has fewer than five employees
Answer: B
Rationale: Maryland law mandates licensure for collection agencies with only
narrow statutory exemptions. Exemptions include employees acting under a
licensed agency or under creditor supervision. There is no exemption based
on debt amount, location, or number of employees.
---
3. Which entity is responsible for regulating, licensing, and disciplining
collection agencies in Maryland?
A. Maryland Department of Transportation
B. State Collection Agency Licensing Board
C. Maryland Insurance Administration
D. Maryland Tax Authority
Answer: B
Rationale: The State Collection Agency Licensing Board, operating within the
Office of the Commissioner of Financial Regulation, oversees licensing,
supervision, enforcement, and disciplinary actions for collection agencies to
ensure compliance with Maryland law and consumer protection standards.
,---
4. What is the minimum surety bond requirement for a Maryland collection
agency license application?
A. $1,000
B. $5,000
C. $10,000
D. $25,000
Answer: B
Rationale: A surety bond of at least $5,000 is required as a financial guarantee
to ensure compliance with Maryland's collection agency regulations. The bond
must be furnished by a surety company authorized to do business in
Maryland.
---
5. Which of the following is NOT required as part of a Maryland collection
agency license application?
A. Certificate of Good Standing from the Maryland Department of Assessments
and Taxation
B. Surety bond
C. Federal tax exemption certificate
D. Fingerprinting for criminal background check
Answer: C
, Rationale: A federal tax exemption certificate is not a requirement for a
collection agency license. Required items include a Certificate of Good
Standing, a surety bond, and fingerprinting for background checks.
---
6. What is the purpose of fingerprinting in the Maryland collection agency
licensing process?
A. To verify handwriting style
B. To conduct a criminal background check
C. To determine financial assets
D. To assign license numbers
Answer: B
Rationale: Fingerprinting is used to conduct a criminal background check to
assess applicant suitability and integrity. The Board evaluates moral character
and fitness as part of the licensing determination.
---
7. A collection agency license in Maryland authorizes the licensee to:
A. Operate only in Baltimore City
B. Do business as a collection agency at each licensed location and under each
licensed name
C. Collect debts without any further regulatory oversight
D. Operate without disclosing additional locations
