Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
030 - BUREAU OF CONSUMER CREDIT PROTECTION
Chapter 300 - COLLECTION AGENCIES: APPLICATION AND RECORD KEEPING REQUIREMENTS
Section 030-300-1 - REQUIREMENTS AND PROCEDURES FOR OBTAINING A COLLECTION AGENCY LICENSE

Universal Citation: 02 ME Code Rules ยง 030-300-1

Current through 2024-38, September 18, 2024

A. NET WORTH REQUIREMENTS

The following represents the minimum net worth standards that an applicant must meet in order to be eligible for a Collection Agency license:

1. sole proprietor $10,000.00
2. partnership $10,000.00
3. Corporation $10,000.00

B. APPLICATION FOR INITIAL LICENSE

An applicant for an initial collection agency license shall submit the following:

1. A completed "Application for Collection Agency License" package (supplied to the applicant by the Bureau) consisting of the following items:
(a) A completed application form;

(b) Completed fingerprint cards for the owner, if the applicant is a sole proprietor, for each partner if the applicant is a partnership and for each officer if the applicant is a corporation;

(c) Verification of registration of the applicant's trade name if the applicant is a sole proprietor or partnership;

(d) Signed "Authorization for Credit Bureau Report" by the owner, if the applicant is a sole proprietor and by the partners if the applicant is partnership;

(e) If the applicant is a corporation:
(i) a certified copy of its charter and bylaws;

(ii) date of registration as a foreign corporation with the Secretary of State; and

(iii) if the applicant is a foreign corporation, a duly-executed power of attorney appointing the Superintendent to be the true and lawful attorney of that corporation in and for this State;

(f) A duly executed bond in the amount specified in subsection E of this section, including the address and telephone number of the bonding company and the name, address and telephone number of the agency through which the bond was procured. (The bond may be filed after the applicant has been notified by the Superintendent that its application has been approved.)

2. A financial statement prepared by an accountant consisting of a Review Report.

3. A copy of any contract or agreement that the applicant will use with its clients.

4. A specimen listing sheet. This form is intended to record the referrals made by a creditor to the collection agency, identifying the name of the debtors, the amount of the debt owed by each and the rate of commission to be paid to the collection agency by the client.

5. A specimen debtor's Work Card. This document shall provide space for recording:
(a) The name and address of the debtor;

(b) The date that the account was referred;

(c) The actual amount of the claim submitted by the client;

(d) The name and address of the creditor or a means of identifying this information by code or account number; and

(e) A record of payments made by the debtor, including the date received and the amount and balance owing.

6. A specimen debtor's Receipt for Cash Payments made to the agency. This document shall provide space for recording:
(a) The name and address of licensee;

(b) The name of the debtor;

(c) The date and amount of payment received;

(d) The balance owing;

(e) The name of the creditor; and

(f) The name or initials of the person accepting payment.

7. A specimen Remittance Sheet. This form shall contain space for the recording of the dates and amounts of remittances by the collection agency to the creditor.

8. A specimen Creditor's Attorney Authorization Form. This form shall clearly state that the creditor may choose its own attorney. If the creditor does not elect to choose a specific attorney, the form may provide that an attorney may be selected by the collection agency.

9. A complete set of form letters that the applicant will use in its communication with Maine debtors.

10. The name of the financial institution or institutions where the trust account and agency account will be maintained, and the identifying numbers assigned by the financial institution to the accounts.

11. A statement designating the exact nature of the applicants intended activity (e.g., letter writing, full service collections, automobile repossessions, etc.).

12. The appropriate license fee specified in subsection D of this section. Checks shall be made payable to "Superintendent, Bureau of Consumer Credit Protection."

C. APPLICATION FOR LICENSE RENEWAL

A licensee seeking renewal of its collection agency license shall submit, prior to July 31st of the year in which its license is to expire, the following:

1. A completed application form (to be supplied by the Bureau).

2. A completed Bond Confirmation indicating that the bond continues in force, or if there has been a change in bonding companies, a duly executed bond in the amount specified in subsection E of this section, including the address and telephone number of the bonding company and the name, address and telephone number of the agency through which the bond was procured.

3. A financial statement prepared by an accountant consisting of a Review Report, evidencing the financial condition of the licensee not more than seven months prior to July 31st of the current year.

4. A license renewal fee of $400. Checks shall be made payable to "Superintendent, Bureau of Consumer Credit Protection."

D. LICENSE FEE SCHEDULE AND PROCEDURE

1. Applicants and licensees with names beginning with letters A-M shall expire July 31st of every even-numbered year. Applicants and licensees with names beginning with letters N-Z shall expire July 31st of every odd-numbered year.

2. Applicants that apply with fewer than 12 months between the date of application and the scheduled date of license renewal shall pay a $200. license fee. Applicants that apply with more than 12 months between the date of application and the scheduled date of license renewal shall pay a $400. license fee.

3. Any applicant for an initial license, or any licensee applying for a license renewal, that voluntarily withdraws its license application shall forfeit its license fee.

E. BOND REQUIREMENTS

The following bond requirements shall apply to new applicants for, and existing licensees seeking renewal of, collection agency licenses:

1. New applicants:

Bond Amounts

(a) Applicants that will undertake direct collections $20,000

(b) Applicants that will undertake repossessions only $15,000

(c) Applicants that are letter writing companies (no direct collections) $ 5,000

2. Existing licensees seeking biennial renewal:

Monthly average of Gross Collections on behalf of Maine creditors (excluding Direct Payments) for the preceding 12 months.

Bond Amount

(a) Over $40,000 a month $50,000

(b) $30,000 - $40,000 a month $45,000

(c) $20,000 - $30,000 a month $35,000

(d) $10,000 - $20,000 a month $25,000

(e) Under $10,000 a month $15,000

3. Other existing licensees seeking biennial renewal:
(a) Applicants that will undertake repossessions only $15,000

(b) Applicants that are letter writing $ companies (no direct collections) 5,000

Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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