Debt Collector License
A person needs to be licensed as a debt collector in this State if the principal purpose of their business is the collection of any debts directly or indirectly owed or due or asserted to be owed or due another. A license is required if the debt collector is located in Maine or if the debt collector, wherever located, attempts to collect debts incurred between a Maine resident and a business located in Maine. In addition, a license is required if the debt collector engages in face-to-face solicitation of creditors in this State as clients, or if the debt was originally incurred in Maine.
The initial application fee for licensure is $600.00. However, if there are fewer than 12 months between the date of application and the scheduled date of license renewal, then the fee is $300.00.
A license is effective for up to two years. The scheduled date of renewal for applicants with names beginning with the letters A through M is July 31 of every even-numbered year. The scheduled date of renewal for applicants with names beginning with the letters N through Z is July 31 of every odd-numbered year.
A bond must accompany each application. The terms of the bond must run concurrent with the period of time during which the license will be in effect. The size of the bond varies with the type of debt collection and the Gross Collections on behalf of Maine creditors each year. A new applicant undertaking direct collections must obtain a bond in the amount of $20,000.00; a new applicant who limits their activities to repossessions needs a $15,000.00 bond; and a letter writing company is required to obtain a $5,000.00 bond.
Upon renewal, licensees whose gross collections for the year average over $40,000.00 per month are required to procure a $50,000.00 bond; licensees whose gross collections are between $30,000.00 and $40,000.00 need a $45,000.00 bond; licensees whose gross collections are between $20,000.00 and $30,000.00 per month need a $35,000.00 bond; those whose gross collections average between $10,000.00 and $20,000.00 are required to obtain a $25,000.00 bond; while licensees whose gross collections are under $10,000.00 per month are required to obtain a bond in the amount of $15,000.00. A $15,000.00 bond is required for renewal as a repossession agent and a $5,000.00 bond is required to renew the license of a letter writing company which makes no direct collections.
Each application must be accompanied by a finger print card for the owner (sole proprietor), and each partner (partnership) or officer (corporation), as applicable.
A financial statement prepared by an accountant consisting of a Review Report must accompany each application as well as a copy of any contract to be used with clients.
Specimen form letters, listing sheets, remittance sheets, and work cards must also accompany the application.
All monies collected on behalf of Maine creditors must be maintained in a trust account to be used solely for Maine clients.
A Word of Warning: Despite our efforts to be accurate, these pages may contain errors. We present this website to you with a good-faith representation that the information it contains is generally reliable. Information on this site should not be relied upon for legal purposes. If you need further information, we would encourage you to contact us directly or seek the advice of a professional.
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