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 030-300-2 - REQUIREMENTS AND PROCEDURES FOR COLLECTION AGENCY OPERATION

Universal Citation: 02 ME Code Rules ยง 030-300-2

Current through 2024-38, September 18, 2024

A. TRUST ACCOUNT REQUIREMENTS

1. A licensee shall maintain a trust account in accordance with generally accepted accounting principles which shall contain only those funds collected on behalf of Maine creditors.

2. The gross amount of monies collected from debtors shall be deposited into the trust account no later than the day after the actual collection was received from the debtors excluding Saturday, Sunday and holidays.

3. A licensee shall withdraw its commission from monies in the trust account on one specific day of its choosing each month. That day, once chosen, will be the same each succeeding month.

4. In remitting to clients a licensee may offset funds in its trust account against commissions to which it is entitled for payments made by debtors directly to clients. Such offsetting may occur only on the date chose under paragraph (3), above. All offsets shall be accounted for through written documentation evidencing the amount of offset, and all commissions obtained through offsetting shall be withdrawn from the trust account that day.

B. LOCATION AND MAINTENANCE OF BOOKS AND RECORDS

1. A licensee may keep the books and records required by this Rule in a location outside this State with the Superintendent's permission. A licensee desiring to keep its books and records outside of this State shall submit a written request to the Bureau specifying:
(a) The exact location and phone number of the location where the books and records would be kept and maintained;

(b) The express willingness of the licensee to pay the actual costs incurred by the Superintendent in conducting an examination or investigation, including the proportionate part of the salaries and expenses (travel, meal and lodging) of the Bureau's Examiners who conduct the examination or investigation; and

(c) The licensee's recognition of its obligation, and its ability to fulfill its obligation, to produce all such books and records within 72 hours at a place in this State specified by the Superintendent should he so request.

2. In making his determination concerning a request to keep records outside of this State, the Superintendent shall consider at least the following:
(a) The number of consumer complaints against the licensee;

(b) The number of creditor complaints against the licensee;

(c) The extent to which any of the complaints referred to in divisions (a) and (b) are related to record keeping;

(d) The quality of the licensee's past compliance examinations;

(e) The burden placed on the licensee by having to maintain records in this State; and

(f) The burden placed on the Bureau in attempting to perform on-site examination of the licensee's records at their proposed out-of-state location.

The Superintendent shall render his decision on such a request within 30 days.

3. A licensee shall, at a minimum, maintain all records specified in Section 1, subsection B, paragraphs 3, 4, 5, 6, 7, 8, and 9 of this Rule. Records shall be kept current to within one week of the current date. Computerized records which contain the equivalent of the information required to be maintained by this subsection are acceptable.

4. A licensee shall inform the Superintendent of any change in the location of its books and records within ten (10) days of such change.

C. COMMUNICATIONS WITH DEBTORS

1. No licensee may use a form letter in communicating with Maine debtors that has not first been submitted to the Bureau for approval. The Bureau shall approve or disapprove letters within 45 days of receipt. The Bureau may take an additional 15 days to review a letter submitted for approval, if necessary. If a letter is disapproved, the licensee will be notified in writing.

2. A licensee may not accept from any person a check or other payment instrument postdated by more that five days unless that person is notified in writing by the licensee of its intent to deposit the check or instrument, at least three, but not more that ten, business days prior to deposit.

3. A licensee shall be available a minimum of 20 hours a week with sufficient personnel to provide information, personally or telephonically concerning a debtor's account. Such hours shall appear on all communications sent to Maine debtors.

4. A licensee shall disclose the telephone number of its licensed location on the letterhead of all communications sent to Maine debtors.

D. CHANGE IN OWNERSHIP

1. A change in ownership of a sole proprietor or change of 50% or more in ownership of any corporate licensee or of the partners in any partnership licensee, shall require the filing of a new license application.

E. CHANGE IN COLLECTION AGENCY ACTIVITY

A licensee may not change its activities from those specified in its application for an initial license as set forth in § 1(B)(11) without first notifying the Superintendent in writing of the intended change. The Superintendent shall determine what additional requirements, including but not limited to, increasing the bond amount or reviewing proposed form letters, are necessary before the licensee may engage in the new activity.

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