Maryland is taking significant steps to protect individuals with criminal records from discrimination in credit reporting with new laws that impose strict limits on the criminal and financial information that can appear in consumer reports. The reports are widely used to evaluate eligibility for loans, insurance, employment, and housing.
The state statutes aim to promote fairness in consumer reporting.
The requirements went into effect on October 1, 2024.
HB 622: Prohibition on including certain types of criminal records
HB 622 prohibits consumer reporting agencies from including specific types of criminal records in their reports. Under the law, consumer reports cannot include:
- Records where the individual was falsely accused, acquitted, or exonerated.
- Charges that resulted in a "nolle prosequi" (decision not to prosecute).
- Cases that did not lead to a guilty verdict or plea.
- Records that have been expunged.
In addition, the law bans consumer reporting agencies from using any of this prohibited information to evaluate a person’s creditworthiness. This ensures that individuals with non-conviction records or expunged records are not unfairly penalized when applying for financial services, housing, or jobs.
SB 41: Tightening Use of Expired Credit Information
SB 41 complements HB 622 by raising the thresholds for when businesses can use older negative financial information that typically disappears from consumer reports after seven to ten years. Under the new law, such expired information can only be used if a consumer applies for:
- Loans or insurance policies exceeding $150,000.
- Jobs paying more than $70,000 annually.
This is a significant increase from previous thresholds ($50,000 for loans/insurance and $20,000 for jobs). It reduces the likelihood that outdated financial records will harm consumers.
Impact on Marylanders
The laws are part of a broader effort to reduce barriers for individuals with criminal records and older financial issues who are trying to rebuild their lives. Advocates have noted that criminal records that don’t result in convictions should not become permanent barriers to economic opportunity. They say the new measures will level the playing field for job seekers, renters, and borrowers across the state.
Protecting Your Consumer Report
Maryland's Office of Financial Regulation (OFR) advises consumers to monitor their credit reports regularly for inaccuracies. Free annual credit reports are available through AnnualCreditReport.com.
If a business denies an application for credit, insurance, or employment based on a consumer report, you can request the report and dispute inaccuracies. You can file a complaint with the OFR’s Consumer Services Unit or contact an attorney for legal advice.
Penalties for Violations
Violations of these laws are classified as Unfair, Abusive, or Deceptive Trade Practices under Maryland law. Offenders may face fines of up to $10,000 for the first violation and $25,000 for subsequent violations.
A Step Toward Equity
Maryland’s new laws align with national trends to reduce barriers for individuals with criminal records and to promote transparency and fairness in credit reporting. These reforms represent a critical step in addressing the challenges faced by individuals seeking second chances.
Need Legal Help With an Expungement?
Another way to clear up your criminal record is through expungement. The attorneys at Maronick Law LLC have experience with Annapolis, Baltimore, Bel Air, Essex, Ocean City, Towson, and White Marsh expungements. An expungement lawyer can review your criminal record for charges and convictions eligible for expungement and ensure your record is properly cleaned up.
Maronick Law LLC can meet with you remotely if you have access to Zoom. You can contact the law office at 410.244.5068 or our website for a free consultation.