1. Initial fee. A debt management service provider may charge to a consumer a reasonable one-time initial or set-up fee in an amount not to exceed $75.

[PL 2007, c. 36, §8 (NEW).]

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Terms Used In Maine Revised Statutes Title 32 Sec. 6174-A

  • Debt management service: means :
A. See Maine Revised Statutes Title 32 Sec. 6172
  • Debt management service provider: means a person, wherever located, that provides or offers to provide to a consumer in this State any debt management services, in return for a fee or other consideration, and a person located in this State that provides or offers to provide to a consumer who is not a resident of this State any debt management services, in return for a fee or other consideration. See Maine Revised Statutes Title 32 Sec. 6172
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • 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. Service fees. In addition to the fee set forth in subsection 1, a debt management service provider may assess either of the following fees:
    A. For a debt management service provider that distributes monthly payments to a consumer’s creditor or creditors, a reasonable monthly fee not to exceed $40; or [PL 2007, c. 36, §8 (NEW).]
    B. For a debt management service provider that acts or offers to act as an intermediary between a consumer and one or more creditors of the consumer for the purpose of adjusting, settling, discharging, reaching a compromise on or otherwise altering the terms of payment of the consumer’s obligation, a reasonable fee not to exceed 15% of the amount by which the consumer’s debt is reduced as part of each settlement. [PL 2007, c. 36, §8 (NEW).]

    [PL 2007, c. 36, §8 (NEW).]

    3. Limitation on excess fees. A debt management service provider may not charge more than one fee authorized under subsections 1 and 2 on the basis that the consumer has entered into a debt management services agreement for joint obligations of a consumer and a consumer’s spouse or other member of the consumer’s household.

    [PL 2007, c. 36, §8 (NEW).]

    4. Application. This section does not apply to a debt management service provider located in this State that does not provide debt management services to a consumer who is a resident of this State.

    [PL 2007, c. 36, §8 (NEW).]

    SECTION HISTORY

    PL 2007, c. 36, §8 (NEW).