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Maryland Code, Commercial Law § 12-623

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) If an agreement on which the finance charge is computed in advance so provides, the holder of the agreement may collect a delinquency or collection charge of the lesser of $10 or 5 percent of the amount of any payment in default, if the default has continued for at least 10 days.

(b)(1) In addition to the delinquency or collection charge, the agreement may provide for the payment of:

(i) Attorney's fees not exceeding 15 percent of the amount due and payable under the agreement; and

(ii) Court costs.

(2) Attorney's fees may be collected only if the agreement is referred for collection to an attorney who is not a salaried employee of the holder.

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Cite this article: FindLaw.com - Maryland Code, Commercial Law § 12-623 - last updated January 01, 2025 | https://codes.findlaw.com/md/commercial-law/md-code-coml-sect-12-623/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

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