Yesterday, the Maine Legislature adopted House Bill 753 (LD 1092) incorporating several changes to the state’s Fair Debt Collection Practices Act that is anticipated to take effect on October 14, 2015 (the date is determined by the adjournment of the state legislature). While the changes are manageable from an operations perspective, they will impact how companies collect on accounts when the consumer resides in Maine.
Specifically, the new law:
- Requires written payment schedules or settlement agreements be provided to the consumer,
- Reaffirms the six year statute of limitations on collection matters,
- Prohibits a lawsuit or arbitration proceeding when the debt is beyond the statute of limitations, and
- Prevents payments received after the expiration of the statute of limitations to revive or extend the limitations period.
As a result of extensive negotiations that DBA International and its lobbyist spearheaded, we successfully prevented a much broader initiative which would have established onerous and in some cases untenable requirements for the collection and litigation of consumer debt. DBA worked closely with local Maine creditor attorneys to ensure the outcome provided enhanced consumer protections without creating unnecessary barriers for the collection of contractual obligations.
The bill text can be found here.
The current text of the Maine Fair Debt Collection Practices Act can be found here.