An Act To Amend the Debt Management Services Laws
Maine Legislature, Session 123, LD 0135
Committee Amendment CA_A_S20 (Senate)
Amends: 32 MRSA §6171, 32 MRSA §6172, 32 MRSA §6173, 32 MRSA §6174-A, 32 MRSA §6174-B, 32 MRSA §6176

COMMITTEE AMENDMENT ,At to S.P. 43, L.D. 135, Bill, "An Act To Amend 
the Debt Management Services Laws" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 32 MRSA §6171, as enacted by PL 1999, c. 560, §3, is amended to read: 
§6I71. Short title 
This chapter may be known and cited as the "Noflprofit Debt Management Services 
Act." 
Sec. 2. 32 MRSA §6172, sub-§l-A is enacted to read: 
I-A. Certified counselor. "Certified counselor" means an individual certified by a 
training program or organization approved by the administrator that authenticates the 
competence of the individual providing education and assistance to consumers in 
connection with debt management services. 
Sec.3. 32 MRSA §6172, sub-§l-B is enacted to read: 
I-B. Consumer education program. "Consumer education program" means a 
program or plan that seeks to improve the financial literacy of consumers. 
Sec. 4. 32 MRSA §6172, sub-§l-C is enacted to read: 
I-C. 
Consumer's obligation. 
"Consumer's obligation" means a debt or debts 
incurred for personal, family or household purposes and does not include a debt or debts 
incurred for business or commercial purposes. 
Sec. 5. 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 
COMMITTEE AMENDMENT 
........ 
COMMITTEE AMENDMENT ,A, to S.P. 43, L.D. 135 
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Sec. 6. 32 MRSA §6173, sub-§l, as enacted by PL 1999, c. 560, §3, is repealed. 
Sec. 7. 32 MRSA §6173, sub-§2, as enacted by PL 1999, c. 560, §3, is amended 
to read: 
2. Registration and reregistration. A RORflfOfit An organization that is eKemflt 
from taKatioR URser the DRiteEl States IRtemal ReveRue Cose, SeetioR 501(e)(3) desiring 
to act, or continue to act, with resfleet to eORsumers iR 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. 8. 32 MRSA §6174-A is enacted to read: 
§6174-A. Limits on fees and charges 
1. Initial fee. A debt management service provider may charge to a consumer a 
reasonable one-time initial or set-up fee in an amount not to exceed $75. 
2. Service fees. In addition to the fee set forth in subsection 1, a debt management 
service provider may assess either of the following fees: 
A. For a debt management service provider that distributes monthly payments to a 
consumer's creditor or creditors, a reasonable monthly fee not to exceed $40; or 
B. 
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, a reasonable fee not to 
exceed 15% of the amount by which the consumer's debt is reduced as part of each 
settlement. 
3. Limitation on excess fees. A debt management service provider may not charge 
more than one fee authorized under subsections 1 and 2 on the basis that the consumer 
COMMITTEE AMENDMENT 
",t"· 
COMMITTEE AMENDMENT "A, to S.P. 43, L.D. 135 
has entered into a debt management services agreement for joint obligations of a 
consumer and a consumer's spouse or other member of the consumer's household. 
4. Application. This section does not apply to a debt management service provider 
located in this State that does not provide debt management services to a consumer who 
is a resident of this State. 
Sec. 9. 32 MRSA §6174-B is enacted to read: 
§6174-B. Counselor certification; consumer education program 
1. Certified counselor. A debt management service provider shall provide evidence 
to the administrator within 12 months after initial employment of a counselor that the 
counselor is a certified counselor. 
2. 
Consumer education. 
A debt management service provider shall offer a 
consumer education program approved by the administrator. A debt management service 
provider may charge a reasonable fee for the program not to exceed $50. 
3. Application. This section does not apply to a debt management service provider 
located in this State that does not provide debt management services to a consumer who 
is a resident of this State. 
Sec. 10. 32 MRSA §6176, sub-§2, ~, as enacted by PL 1999, c. 560, §3, is 
amended to read: 
B. 
A full description of the services to be performed for the consumer, any fees to 
be charged to the consumer for such services and any contributions, fees or charges 
the consumer has agreed to make or pay to the debt management service provider in 
accordance with the limitation on fees provided in section 6174-A; 
Sec. 11. 32 MRSA §6176, sub-§2, ~, as enacted by PL 1999, c. 560, §3, is 
amended to read: 
F. 
A complete list of the consumer's obligations that are subject to the agreement 
and the names and addresses of the creditors holding those obligations and a 
disclosure of whether or not the consumer's obligations are individual obligations of 
the consumer alone or joint obligations of the consumer and a spouse or other 
member of the consumer's household; 
Sec. 12. 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. 
Sec. 13. Appropriations and allocations. The following appropriations and 
allocations are made. 
PROFESSIONAL AND FINANCIAL REGULATION, DEPARTMENT OF 
Office of Consumer Credit Regulation 0091 
Initiative: Allocates funds for additional administrative costs reSUlting from permitting 
for-profit companies to obtain licenses as debt management service providers. These 
additional costs will be offset by additional application fees. 
COMMITTEE AMENDMENT 
~ 
.. 'O-
COMMITTEE AMENDMENT ,A" to S.P. 43, L.D. 135 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
SUMMARY 
2007-08 
$9,500 
$9,500 
2008-09 
$9,500 
$9,500 
This amendment replaces the bill. As in the bill, this amendment amends the State's 
debt management services laws by permitting for-profit companies to obtain licenses as 
debt management service providers. The amendment clarifies that debt management 
service providers include only those companies that process consumer debt, not 
commercial debts. It requires that debt management service providers who offer services 
to Maine consumers use certified counselors and provide consumer education programs. 
The amendment establishes caps on fees and charges that may be assessed to consumers. 
The amendment 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, but it exempts those 
companies that are located in Maine but that do not serve consumers in this State from the 
provisions establishing fee caps and requiring consumer education. 
The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/14/07 :tvac.. 
LD 135 
LR 599(02) 
An Act To Amend the Debt Management Services Laws 
Fiscal Note for Bill as Amended by Committee Amendment "A" s -~o 
Committee: Insurance and Financial Services 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
$9,500 
$9,500 
$9,500 
$9,500 
$9,500 
$9,500 
$9,500 
$9,500 
The Office of Consumer Credit Regulation in the Department of Professional and Financial Regulation estimates 
approximately 30 new debt management service providers may be registered as a result of the bill over the next 3 
years. The office estimates it will incur additional administrative costs including additional legal services and website 
and licensing system maintenance, that will require an additional allocation of $9,500 in each of fiscal years 2007-08 
and 2008-09. The office estimates that additional application fees from these new providers will offset the additional 
costs. 
LR0599(02) - Fiscal Note - Page 1 of 1