1.
Administrative authority granted to NMLS. To effectuate the
transition of all debt collector licensing to NMLS, NMLS is authorized to
collect fees and remit those fees to the Bureau, collect fees for its
processing costs, process and maintain license records, and require use of NMLS
uniform electronic and paper forms.
2.
Licensing periods
Previously, licenses for debt collectors were granted for a
two-year period and expired on July 31. Effective with this rule, licenses are
issued beginning January 1 and expire on December
31in of the year in which issued. The term of
licenses scheduled to expire on July 31, 2023 is extended to expire on December
31, 2023. Licensees with licenses scheduled to expire in years following 2023
shall be required to transition to NMLS by December 31, 2023 but shall receive
a credit of 1/4 of the current two-year license fee for each 1/2 year remaining
on its license against the current renewal fee.
3.
For debt collectors that hold a
valid Maine license as of August 31, 2023
a.
Transitional period. The
period from November 1, 2023 through December 31, 2023 is considered a
transitional period, during which all licensed debt collectors will have the
obligation to transition from the State of Maine's licensing system and must
obtain licenses through NMLS.
b.
One-month late transitional period. All renewal
applications to transition existing licensees to NMLS received between January
1 and January 31 of a year in which transition is allowed will be processed,
but applicants will be assessed a late fee of $100.00.
c.
Deadline. Renewal
applications transitioning to NMLS will not be accepted after January 31. All
applications received after that date will be considered new applications,
subject to the provisions and fees set forth in subsection 4 below.
d.
NMLS processing fees. At the
time existing licensees apply to NMLS for a renewal license, they must pay NMLS
processing fee directly to NMLS.
e.
State of Maine renewal license application fees. Annual fees
assessed to renewal applicants are as follows:
i. Debt Collector renewal fee:
$400.00;
ii. Debt Collector branch
office renewal fee: $200.00.
4.
For applicants that do
not hold a valid Maine debt collector license as of the
effective date of this rule ("new applicants")
a.
NMLS processing fees.
Applicants that submit applications after November 1, 2023 will pay NMLS
processing fee directly to the NMLS.
b. Applicants applying after the effective
date of this rule but prior to November 1, 2023 shall do so on forms required
by the Administrator and filed directly with the Bureau.
c.
Terms of licenses. All
licenses will be for the term of the calendar year. New licenses issued
November 1 or later each year shall be valid through December 31 of the
following year.
d.
State of
Maine new license application fees. Fees assessed to new applicants (as
well as existing licensees that apply to transition to NMLS after January 31)
are as follows:
i. Debt Collector application
fee: $400.00;
ii. Debt Collector
branch office application fee: $200.00.
5.
New licenses and renewal licenses
issued following completion of the transition to NMLS
a.
NMLS to determine license and
renewal procedures. New licenses and renewal licenses issued after
November 1, 2023 shall be processed pursuant to procedures established by
NMLS.
b.
NMLS to determine
time periods for license validity. New licenses and renewal licenses
issued after November 1, 2023 shall be valid for the time periods established
by NMLS.
c.
Payment of
fees. Application, renewal and processing fees will be paid directly to
NMLS.
d.
Late renewal for
other than application for initial transition to NMLS. For any renewal
application other than the initial application for an entity to transition its
existing license to NMLS, renewal applications received after December 31 of
any year will be considered late. The status of such licenses will be changed
to "terminated - failed to renew" or an equivalent status. Such licenses may be
reinstated if a renewal application is received between January 1 and the end
of February, together with all renewal fees and late fee of $100.00. Beginning
March 1 of every year, renewal requests will not be processed and companies
that failed to renew their license by March 1 must apply for a new
license.
6.
Licensing Requirements. Applicants for new and renewal licenses
shall provide the following information and documentation as required by the
Administrator either for Bureau in-office filings or with NMLS:
a. Full legal name and address of applicant,
Social Security or Tax Identification Number, any assumed or fictitious name,
and the address of the locations to be licensed.
b. The name of any sole proprietor, partner
of a partnership, corporate officer, member of a limited liability company or
professional partnership, and holder of a controlling interest in the
applicant.
c. Ownership percentage
for any person listed in subpart 6(b), if any.
d. A criminal history report and consumer
report for each person listed in subpart 6(b).
e. For corporations or other legal entities,
the date and place of incorporation or organization, a certified copy of the
charter and articles of incorporation or certificate of formation and any
membership or partnership agreement. For foreign corporations or entities,
proof of filing with the office of Maine Secretary of State as a foreign
corporation, limited liability company, or partnership; and the name and
address of a designated agent on whom service of process may be made in this
State.
f. The names and addresses
of all banks with which the applicant has done business during the past five
years.
g. Whether any individual
listed in subpart 6(b) has been convicted in any state or federal court of the
crime of forgery, fraud, obtaining money under false pretense, embezzlement,
extortion, larceny, burglary, breaking and entering, robbery, criminal
conspiracy to defraud, or bribery and, if so, the details of the
conviction.
h. Whether the
applicant, its parent, or any affiliate ever had its debt collector's license
in any State suspended or revoked and, if so, the State in which it occurred,
the reason for the action taken and the name and address of the regulatory
agency involved.
i. A financial
statement prepared by a Certified Public Accountant consisting of a Review
Report or Audited Report demonstrating a positive tangible net worth of at
least $10,000.00.
j. A
résumé of previous business experience of each person listed in
subpart 6(b) and any person who will be actively in charge of the licensed
office, indicating previous experience or qualifications that bear on the issue
of competency in operating a debt collection business.
k. All states in which the applicant is
already licensed as a debt collector.
l. The financial institution in which the
separate trust account for collections on behalf of Maine creditors will be
maintained and the number assigned by the institution to the account.
m. A statement describing the exact nature of
the proposed operations, e.g., letter writing service, full-service
collections, repossessions, bad check recovery.
n. A specimen Contract or Agreement with
Clients, Listing Sheet, Debtor's Work Card, Debtor's Receipt for Cash Payment,
Remittance Sheet, and Creditor's Attorney Authorization Form, as required by
Bureau Chapter 300, §1(B). If any of these functions are computerized,
sample screen prints may be submitted.
o. A copy of each collection form letter
intended for use in this State. Please number all letters sequentially and
indicate which letters are intended as initial or first communications (as
opposed to the second or subsequent communications).
p. Whether the applicant records some, most,
or all outgoing collection calls and a description of how often such calls are
recorded, in what format they are recorded, and how long such recordings are
retained by the applicant.
q. A
completed bond form, in the amount required by Bureau Rule Chapter 300,
§1(E).
r. The name, title,
address, and telephone number of the person to contact for the scheduling of
routine compliance examinations.
s.
The name, title, address, and telephone number of the person to contact if the
Bureau receives consumer complaints regarding the activities of your
company.
7.
Changes to existing licensing information. If any information
reported by a licensee changes during a period of licensure, the licensee must
amend its information on file with NMLS within 30 days of the occurrence of the
change or such shorter period as required by NMLS rules or procedures. Notice
of a change of control of the licensee must be provided to the Bureau by
advance change notice on NMLS, and the Bureau must approve any change of
control before the same becomes effective. Any change of control of a licensee
that occurs without approval or that the Bureau rejects will cause the
immediate and automatic revocation of the license.
8.
Routine technical rule. This
is a routine technical rule as authorized by
32 M.R.S.
§11031(2).
