An Act To Amend the Maine Consumer Credit Code
Maine Legislature, Session 122, LD 1416
Committee: Insurance and Financial Services
Sponsors: FARRINGTON, WESTON, BOWLES, BRAUTIGAM, BRYANT-DESCHENES, CANAVAN, GLYNN, MILLS, PERRY, SNOWE-MELLO
Amends: 9-A MRSA §1, 9-A MRSA §6

Legislative Document 
No. 1416 
H.P.980 
House of Representatives, March 22, 2005 
An Act To Amend the Maine Consumer Credit Code 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Il/~ 
frl.7J?d£~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative FARRINGTON of Gorham. (GOVERNOR'S BILL) 
Cosponsored by Senator WESTON of Waldo and 
Representatives: BOWLES of Sanford, BRAUTIGAM of Falmouth, BRYANT-DESCHENES 
of Turner, CANAVAN of Waterville, GLYNN of South Portland, MILLS of Farmington, 
Senators: PERRY of Penobscot, SNOWE-MELLO of Androscoggin. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 9-A MRSA §1-201, sub-§lO is enacted to read: 
10. 
Notwithstanding any other provision of law, this Act 
applies to any person offering, arranging or purporting to offer 
or arrange consumer credit transactions if that person claims to 
be located in this State or claims to possess a Maine license or 
registration issued pursuant to this Act. 
Sec. 2. 9-A MRSA §6-201, as amended by PL 2001, c. 371, §5, 
is further amended to read: 
§6-20l. Applicability 
This Part applies to 
a 
person engaged in this State in 
entering into consumer credit transactions and to a person having 
an 
office 
or 
place 
of 
business 
in 
this 
State 
who 
takes 
assignments of aRa or undertakes direct collection of payments 
from or enforcement of rights against debtors arising from these 
transactions. 
In 
addition, 
this 
Part 
applies 
to 
a 
person, 
wherever located, 
who 
takes 
assignments of 
aRa or undertakes 
direct collection of 
payments 
from 
or 
enforcement of 
rights 
against debtors arising from a consumer credit 
sa~e--t>-f---a--met;eF 
yeRie~e transaction 
subject 
to 
this Title. 
This 
Part 
also 
applies 
to 
a 
person, 
other 
than 
a 
supervised 
financial 
organization, wherever located, who takes assignments of aRa or 
undertakes direct collection of payments from or enforcement of 
rights against debtors arising from a consumer credit transaction 
subject to Article ±X ~. 
Sec.3. 9-A MRSA §§9-305-A and 9-305-B are enacted to read: 
§9-305-A. 
Timely payments from escrow 
A creditor, 
assignee or servicer that holds or controls 
funds of a consumer in an escrow account for the payment of taxes 
or insurance premiums shall make timely payments from that escrow 
account for a consumer credit transaction secured by a mortgage 
on real estate. 
A creditor, assignee or servicer is liable to 
the consumer for actual damages resulting from failure to make 
timely payments from that escrow account. 
The creditor, assignee 
or servicer shall also rectify the results of a failure to make 
timely payments, including causing corrections of the consumer's 
credit report and causing the discharge of any liens against the 
consumer's real estate. 
§9-305-B. 
Timely re§~nses to requests for payoff figures 
Page l-LR2136 (1) 
A creditor, assignee or servicer shall respond to a request 
for a payoff figure within 3 business days following receipt of 
such a request from a consumer or an agent of the consumer for a 
consumer 
credit 
transaction 
secured 
by 
a 
mortgage 
on 
real 
estate. 
The response must include a precise payoff figure as of 
a 
date 
certain 
and 
must 
contain 
information permitting 
the 
consumer or the consumer's agent to update that figure, such as 
providing a per diem rate from a date certain. 
A charge may not 
be assessed for the first 2 requests in any calendar year, and a 
charge for each subsequent request may not exceed $5. 
SUMMARY 
This bill makes several changes to the Maine Consumer Credit 
Code. 
It requires that mortgage lenders, assignees and mortgage 
servicers: 
1. 
Use due care to ensure payment of taxes and insurance 
from consumer escrow accounts; and 
2. 
Respond 
promptly to 
requests 
for 
payoff 
amounts 
on 
existing loans. 
The bill also increases the ability of the State to regulate 
fraudulent advertising that contains misinformation reflecting 
negatively on this State and its legitimate lenders. 
Finally, it 
extends Maine Consumer Credit Code registration requirements to 
purchasers, 
including assignees, or servicers of all types of 
consumer credit transactions, including sales, loans and leases, 
so that consumer complaints resulting from that servicing can be 
promptly addressed.