Code of Maryland Regulations
Title 09 - MARYLAND DEPARTMENT OF LABOR
Subtitle 03 - COMMISSIONER OF FINANCIAL REGULATION
Chapter 09.03.07 - Credit Reporting Agencies
Section 09.03.07.04 - Bond

Universal Citation: MD Code Reg 09.03.07.04

Current through Register Vol. 51, No. 19, September 20, 2024

A. The amount of a consumer reporting agency surety bond shall be determined as follows based on the number of consumer reports that the consumer reporting agency assembled, evaluated, or sold during the prior calendar year:

(1) Less than or equal to 10 percent of the total population of Maryland as published by the United States Census Bureau and listed on the Commissioner's website shall file through NMLS a $100,000 bond;

(2) More than 10 percent but less than or equal to 25 percent of the total population of Maryland as published by the United States Census Bureau and listed on the Commissioner's website shall file through NMLS a $250,000 bond;

(3) More than 25 percent but less than or equal to 50 percent of the total population of Maryland as published by the United States Census Bureau and listed on the Commissioner's website shall file through NMLS a $500,000 bond;

(4) More than 50 percent but less than or equal to 75 percent of the total population of Maryland as published by the United States Census Bureau and listed on the Commissioner's website shall file through NMLS a $750,000 bond; or

(5) More than 75 percent of the total population of Maryland as published by the United States Census Bureau and listed on the Commissioner's website shall file through NMLS a $1,000,000 bond.

B. In considering a request to grant an exemption to the requirement for a consumer reporting agency to file a surety bond with the Commissioner at the time of registration or registration renewal, the Commissioner may grant to a consumer reporting agency an exemption from the surety bond required under §A of this regulation if the Commissioner determines that the following conditions are met:

(1) The granting of an exemption is not detrimental to the public interest;

(2) The consumer reporting agency has conducted its business in a lawful manner;

(3) The consumer reporting agency has complied, and has the capability and systems in place to continue to comply, with the provisions of the Maryland Personal Information Protection Act, Commercial Law Article, §14-3501, et seq., Annotated Code of Maryland; and

(4) The consumer reporting agency demonstrates the financial ability to pay potential claims by establishing any of the following:
(a) The tangible net worth of the consumer reporting agency, as reported on an unconsolidated basis and certified by a control person, is equal to or greater than twice the amount of the surety bond required under §A of this regulation or this section;

(b) The consumer reporting agency's short-term credit rating by a nationally recognized rating agency is at least equal to P2, A2, or F2 or an equivalent rating;

(c) The consumer reporting agency has regularly maintained and, during the registration period shall maintain, liquid assets, in form acceptable to the Commissioner, and in an amount that is at least equal to or greater than twice the amount of the surety bond required under §A of this regulation or this section; or

(d) In the case of a specialty consumer reporting agency, the consumer reporting agency maintains a current accreditation by the Professional Background Screening Association or any similar accreditation program approved by the Commissioner.

Disclaimer: These regulations may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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