Maine Revised Statutes Title 32 Sec. 11019 – Collection action by debt buyer
Current as of: 2023 | Check for updates
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1. Complaint; required allegations. A debt buyer may not initiate a collection action against a consumer unless the debt buyer alleges all of the following information in the complaint:
A. The information described in section 11013, subsection 9, including that the debt buyer possesses the documentation described in section 11013, subsection 9; [PL 2017, c. 216, §6 (NEW).]
B. The basis for any interest and fees described in section 11013, subsection 9; [PL 2017, c. 216, §6 (NEW).]
C. The basis for the request for attorney’s fees, if applicable; [PL 2017, c. 216, §6 (NEW).]
D. That the debt buyer is the current owner of the debt; and [PL 2017, c. 216, §6 (NEW).]
E. That the cause of action is filed within the applicable statute of limitations period. [PL 2017, c. 216, §6 (NEW).]
[PL 2021, c. 245, Pt. F, §1 (AMD).]
Terms Used In Maine Revised Statutes Title 32 Sec. 11019
- Charge-off: means the act of a creditor removing an account from its books as an asset and treating it as a loss or expense because payment is unlikely. See Maine Revised Statutes Title 32 Sec. 11002
- Collection action: means a lawsuit or arbitration proceeding initiated to collect a debt from a consumer. See Maine Revised Statutes Title 32 Sec. 11002
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Consumer: means any natural person obligated or allegedly obligated to pay any debt. See Maine Revised Statutes Title 32 Sec. 11002
- Contract: A legal written agreement that becomes binding when signed.
- Creditor: means any person who offers or extends credit creating a debt or to whom a debt is owed, but that term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of that debt for another. See Maine Revised Statutes Title 32 Sec. 11002
- Debt: includes any obligation or alleged obligation for payment of child support owed to, or owed by, a resident of this State and any obligation or alleged obligation relating to a check returned because of insufficient funds if a consumer is subject to an enforcement program operated by a private entity. See Maine Revised Statutes Title 32 Sec. 11002
- Debt buyer: means a person that is regularly engaged in the business of purchasing charged-off consumer debt for collection purposes, whether the person collects the debt or hires a 3rd party, which may include an attorney-at-law, in order to collect the debt. See Maine Revised Statutes Title 32 Sec. 11002
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Revolving credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.) Source: OCC
- Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.
2. Debt collection complaint; attachments. In a collection action initiated by a debt buyer, the debt buyer shall attach all of the following materials to the complaint:
A. A copy of the contract, application or other document evidencing the consumer’s agreement to the debt. If a signed writing evidencing the original debt does not exist, the debt buyer shall attach a copy of a document provided to the consumer before charge-off demonstrating that the debt was incurred by the consumer or, for a revolving credit account, the most recent monthly statement recording the extension of credit for the purchase of goods or services, for the lease of goods or as a loan of money or the last payment or balance transfer; and [PL 2017, c. 216, §6 (NEW).]
B. A copy of the bill of sale or other writing establishing that the debt buyer is the owner of the debt. If the debt was assigned more than once, the debt buyer shall attach each assignment or other writing evidencing the transfer of ownership to establish an unbroken chain of ownership, beginning with the original creditor to the first debt buyer and each subsequent debt buyer. [PL 2017, c. 216, §6 (NEW).]
[PL 2017, c. 216, §6 (NEW).]
3. Requirements for judgment. Regardless of whether the consumer appears in the action, the court may not enter a judgment in favor of a debt buyer in a collection action against a consumer, including an action brought in small claims court pursuant to Title 14, chapter 738, unless the debt buyer files with the court:
A. A copy admissible under the Maine Rules of Evidence of the contract, application or other writing establishing the consumer’s agreement to the debt and any contract interest or fees alleged to be owed. If a signed writing evidencing the original debt does not exist, the debt buyer must file a copy of a document provided to the consumer before charge-off demonstrating that the debt was incurred by the consumer or, for a revolving credit account, the most recent monthly statement recording the extension of credit for the purchase of goods or services, for the lease of goods or as a loan of money or the last payment or balance transfer; [PL 2017, c. 216, §6 (NEW).]
B. Business records or other evidence admissible under the Maine Rules of Evidence to establish the amount due at charge-off; [PL 2017, c. 216, §6 (NEW).]
C. A copy admissible under the Maine Rules of Evidence of each bill of sale or other writing establishing transfer of ownership of the debt from the original creditor to the debt buyer. If the debt was assigned more than once, the debt buyer must file each assignment or other writing evidencing the transfer of ownership to establish an unbroken chain of ownership, beginning with the original creditor to the first debt buyer and each subsequent debt buyer; and [PL 2017, c. 216, §6 (NEW).]
D. Notwithstanding any other law, if attorney’s fees are sought under contract, a copy admissible under the Maine Rules of Evidence of the contract evidencing entitlement to attorney’s fees. [PL 2017, c. 216, §6 (NEW).]
[PL 2017, c. 216, §6 (NEW).]
SECTION HISTORY
PL 2017, c. 216, §6 (NEW). PL 2021, c. 245, Pt. F, §1 (AMD).