Maryland Court Clarifies Medical Debt Collection Under MCDCA

Maryland Court Ruling on Medical Debt Collection

Overview of the MCDCA

The Maryland Consumer Debt Collection Act (MCDCA) regulates how debt collectors can pursue debts, including medical debt. It aims to protect consumers from unfair and deceptive practices in debt collection.

Key Court Findings

• Scope of MCDCA: The Maryland Court of Appeals clarified that the MCDCA covers not only the methods used by debt collectors but also their conduct in collecting debts. This means that any attempt to collect a debt that is not owed, or to collect fees not authorized by law, can be challenged under the MCDCA.
• Litigation Privilege: The court ruled that the litigation privilege does not protect debt collectors from claims of unfair practices under the MCDCA. This means that even if a debt collector is pursuing a debt through legal means, they can still be held liable for deceptive practices.

Implications for Medical Debt

• Consumer Protection: The ruling reinforces consumer rights, particularly for those with medical debt. It allows individuals to contest collections for debts they do not owe or for amounts that exceed what is legally permissible.
• Debt Collector Accountability: Debt collectors must ensure that their practices comply with the MCDCA. They cannot claim amounts that are not legally owed, and they must be transparent about any fees associated with debt collection.

This clarification is significant for consumers facing medical debt, as it strengthens their ability to challenge unfair collection practices in Maryland.