An Act To Amend the Debt Management Services Laws
Maine Legislature, Session 123, LD 0135
Committee: Insurance and Financial Services
Sponsors: BROMLEY, PERRY, RECTOR, SMITH
Amends: 32 MRSA §6172, 32 MRSA §6173, 32 MRSA §6174-A

Legislative Document 
No. 135 
S.P.43 
In Senate, January 9,2007 
An Act To Amend the Debt Management Services Laws 
Submitted by the Department of Professional and Financial Regulation pursuant to Joint 
Rule 204. 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Senator BROMLEY of Cumberland. 
Cosponsored by Representative PERRY of Calais and 
Representatives: RECTOR of Thomaston, SMITH of Monmouth. 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 32 MRS A §6171, as enacted by PL 1999, c. 560, §3, is amended to read: 
§6171. Short title 
This chapter may be known and cited as the "Nonprofit Debt Management Services 
Act." 
Sec. 2. 32 MRSA §6172, sub-§3, as enacted by PL 1999, c. 560, §3, is amended 
to read: 
3. 
Debt management service provider. 
"Debt management service provider" 
means a person, wherever located, that provides or offers to provide to a consumer in this 
State any debt management services, in return for a fee or other consideration, and a 
person located in this State that provides or offers to provide to a consumer who is not a 
resident of this State any debt management services, in return for a fee or other 
consideration. "Debt management service provider" does not include: 
A. 
A supervised financial organization; 
B. A supervised lender; or 
C. 
A person admitted to the practice of law in this State as of the effective date of 
this chapter, except to the extent that debt management services constitute the 
exclusive activity of that attorney. 
Sec. 3. 32 MRSA §6173, sub-§l, as enacted by PL 1999, c. 560, §3, is repealed. 
Sec. 4. 32 MRSA §6173, sub-§2, as enacted by PL 1999, c. 560, §3, is amended 
to read: 
2. Registration and reregistration. A nonprofit An organization that is exempt 
from taxation under the United States Internal Reyenue Code, Section 501 (c)(3) desiring 
to act, or continue to act, with respect to consumers in this State as a debt management 
service provider shall apply to the administrator for registration or reregistration in 
accordance with this chapter. 
The application must be in a form prescribed by the 
administrator. The administrator may refuse the application if it contains erroneous or 
incomplete information. A registration may not be issued unless the administrator, upon 
investigation, finds that the financial soundness and responsibility, insurance coverage, 
consumer education programs and services component, character and fitness of the 
applicant and, when applicable, its partners, officers or directors, warrant belief that the 
business will be operated honestly and fairly within the purposes of this chapter. The 
initial application for registration may be filed at any time and must include a fee of $500. 
A registration or reregistration under this chapter expires on December 31 st of the year 
approved. An annual reregistration application must be filed by December 1 st of each 
year for the following year and must include a fee of $250. 
Sec. s. 32 MRSA §6174-A is enacted to read: 
.. 
§6174-A. Limits on fees and charges 
A debt management service provider may not charge fees to a consumer in excess of: 
1. One-time set-up fees and debt management service. For a one-time initial or 
account set-up fee, $75. For a debt management service provider that distributes monthly 
payments to a consumer's creditor or creditors, a monthly fee of $40; or 
2. 
Debt management service intermediary. 
For a debt management service 
provider that acts or offers to act as an intermediary between a consumer and one or more 
creditors of the consumer for the purpose of adjusting, settling, discharging, reaching a 
compromise on or otherwise altering the terms of payment of the consumer's obligation, 
15% of the amount by which the consumer's debt is reduced as part of each settlement. 
Sec. 6. Maine Revised Statutes headnote amended; revision clause. In the 
Maine Revised Statutes, Title 32, chapter 80-A, in the chapter headnote, the words 
"nonprofit debt management services" are amended to read "debt management services" 
and the Revisor of Statutes shall implement this revision when updating, publishing or 
republishing the statutes. 
SUMMARY 
This bill amends the State's debt management services laws by permitting for-profit 
companies to obtain licenses as debt management service providers. The bill clarifies 
that a debt management service provider must be registered if it serves consumers in this 
State or if it is located in this State. This bill establishes caps on fees and charges that 
may be assessed to consumers.