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NEWS RELEASE

December 15, 2008

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Howard County Issues Cease and Desist Order Against Mortgage Company’s Telephone Solicitations

ELLICOTT CITY, MD – Howard County Executive Ken Ulman announced today that the Office of Consumer Affairs has issued a Cease and Desist Order to M&S Financial for making telephone solicitations to Howard County and other government employees offering mortgage loans at reduced rates. M&S Financial, based out of Virginia, is not a licensed mortgage or consumer loan lender in Maryland. It is unlawful for businesses or individuals to offer or provide such loans in Maryland without first obtaining the required license from the Maryland Division of Financial Regulation.

“It is especially important, in these tough financial times, for consumers to make sure they are dealing with lenders who are licensed by the State,” said Ulman. “If our Office of Consumer Affairs finds that unlicensed lenders work here, we will take whatever action is necessary to make sure that those lenders are stopped unless or until they obtain the necessary license.”

The Office of Consumer Affairs was contacted by several Howard County employees regarding the loan solicitations made to their office telephones by M&S Financial using an automated dialing system that left a pre-recorded message. The Cease and Desist Order prohibits the business from making loan offers in Howard County until they have obtained the required license and provided the Office of Consumer Affairs with proof of the licensure. They are also forbidden from making telephone calls soliciting the sale or lease of goods or services of any kind in Howard County through the use of an automated dialing system delivering prerecorded messages. Violations of this Order could result in civil fines of $500 per violation.

“These types of telephone solicitations violate Maryland law,” said Rebecca Bowman, Administrator of the Office of Consumer Affairs. “Consumers who do not wish to receive telephone solicitations can register with the Federal Trade Commission’s ‘Do Not Call’ registry. However, consumers who have not registered should not be subject to the annoyance and inconvenience of receiving random, recorded solicitations.”

In addition, the Federal Trade Commission recently revised their telemarketing rules, banning prerecorded telemarketing sales nationwide, unless a consumer agrees, in writing, to accept them. The ban takes effect September 1, 2009. Starting this past December 1st telemarketers must allow consumers to opt out of a call at the beginning of that call by pressing a designated key on their phone. The rules will not affect non-solicitation prerecorded messages, such as calls from your doctor’s office reminding you of an appointment, but only calls from businesses trying to sell something. Also, the big exceptions for the rules are: charitable solicitations (who are not banned from using prerecorded messages but must allow you to opt out of future calls); businesses regulated by other agencies, such as banks; and political messages.

Consumers can check whether a loan company is licensed by calling the Division of Financial Regulation at (410) 230-6100 or by visiting the Division’s website at http://www.dllr.state.md.us/pq/. Consumers can register their phone number with the “Do Not Call List,” by visiting the FTC’s website, www.donotcall.gov, or by calling 1-888-382-1222.

Questions on this topic or other consumer-related matters may be directed to the Office of Consumer Affairs at 410-313-6420 or consumer@howardcountymd.gov.