May 12, 2020: On March 18, 2020, Maine Governor Janet Mills signed into law LD 1053 by Rep. Janice Cooper (Chapter 622 of the Laws of 2020). This new law, which takes effect on September 1, 2020, will reduce the statute of limitations on judgment liens from 20 years to 10 years with a 10-year renewal. Liens created prior to September 1, 2020, will retain their 20-year limitations period.
The bill originally would have deemed any judgment or decree of any court based upon a consumer obligation “paid and satisfied” at the end of one year unless within that period the judgment creditor had commenced an enforcement action on the judgment or decree. It was through RMAI’s efforts and the efforts of the RMAI lobbyist that we were able to negotiate a compromise with Maine consumer advocates.
RMAI strongly recommends that its members share this member alert with any creditor, debt buyer, and law firm it transacts business with as well as those internally responsible for compliance, purchase/sale, and legal operations.
This alert is intended for members of the Receivables Management Association International and is for informational purposes only and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.