Maine Revised Statutes Title 32 Sec. 11020 – Collection action to collect credit card and student loan debts; additional requirements for collection action
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1. Applicability. This section applies to any collection action against a consumer to collect a credit card or student loan debt initiated by a debt collector.
[PL 2021, c. 245, Pt. F, §2 (NEW).]
Terms Used In Maine Revised Statutes Title 32 Sec. 11020
- Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
- 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
- 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 collector: includes persons who furnish collection systems carrying a name that simulates the name of a debt collector and who supply forms or form letters to be used by the creditor even though the forms direct the debtor to make payments directly to the creditor. See Maine Revised Statutes Title 32 Sec. 11002
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- 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.
- Plaintiff: The person who files the complaint in a civil lawsuit.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
2. Commencement of collection action. A collection action may not be commenced in small claims court pursuant to Title 14, chapter 738. A collection action is commenced upon the filing or serving of a complaint that provides notice of the complaint in the same manner as other civil complaints and satisfies the requirements of this section.
[PL 2021, c. 245, Pt. F, §2 (NEW).]
3. Notice of complaint. In a collection action subject to this section, the debt collector shall attach to the front of the complaint a one-page form notice to the consumer as developed by the Department of Professional and Financial Regulation, Bureau of Consumer Credit Protection. The form notice must be written in language that is plain and readily understandable by the general public and, at a minimum, must contain the following:
A. A statement that failure to answer the complaint may result in entry of judgment in the amount demanded by the debt collector; and [PL 2021, c. 245, Pt. F, §2 (NEW).]
B. A sample answer and an explanation that the consumer may fill out the form and return it to the court as the answer to the complaint. If the consumer returns the form to the court, the consumer does not need to file a more formal answer or responsive pleading. [PL 2021, c. 245, Pt. F, §2 (NEW).]
[PL 2021, c. 245, Pt. F, §2 (NEW).]
4. Entry of judgment. A court may not enter judgment unless it specifically finds that all the requirements of this section and all other applicable requirements of this chapter are met, including, but not limited to, whether the plaintiff has produced evidence that is admissible pursuant to the Maine Rules of Evidence on all required elements of its claim.
[PL 2021, c. 245, Pt. F, §2 (NEW).]
5. Default judgment. If the defendant has failed to plead or otherwise defend, the plaintiff may apply for entry of default and a default judgment. The judge overseeing the action is responsible for entering a default and a default judgment, not the clerk of the court. Regardless of whether the defendant appears in the action or the judgment is based on a proposed order concerning a settlement, the court may not enter judgment in favor of the plaintiff unless the court determines that all the requirements of this section and all other applicable requirements of this chapter are met, including, but not limited to, whether the plaintiff has produced evidence admissible pursuant to the Maine Rules of Evidence on all required elements of its claim.
[PL 2021, c. 245, Pt. F, §2 (NEW).]
6. Exclusion. This section does not apply to any collection action brought by a supervised financial organization as defined in Title 9?A, section 1?301, subsection 38?A.
[PL 2021, c. 245, Pt. F, §2 (NEW).]
7. Rules. The Supreme Judicial Court may adopt rules necessary to implement the provisions of this section.
[PL 2021, c. 245, Pt. F, §2 (NEW).]
SECTION HISTORY
PL 2021, c. 245, Pt. F, §2 (NEW).