An Act To Promote Fiscal Responsibility in the Purchasing of Debt
Maine Legislature, Session 128, LD 1199
Committee Amendment CA_A_H468 (House)
Amends: 16 MRSA §355, 32 MRSA §11002, 32 MRSA §11013, 32 MRSA §11019, 32 MRSA §11031, 32 MRSA §11053, 32 MRSA §11054

COMMITTEE AMENDMENT "A " to H.P. 836, L.D. 1199, Bill, "An Act To 
Promote Fiscal Responsibility in the Purchasing of Debt" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 16 MRSA §355, as amended by PL 1981, c. 470, Pt. A, §34, is further 
amended to read: 
§355. Affidavit of plaintiff as prima facie evidence; exception 
In all actions brought on an itemized account annexed to the complaint, including an 
action brought in small claims court pursuant to Title 14, chapter 738, the affidavit of the 
plaintiff, made before a notary public using a seal, that the account on which the action is 
brought is a true statement of the indebtedness existing between the parties to the action 
with all proper credits given and that the prices or items charged therein are just and 
reasonable shall be ~ prima fade evidence of the truth of the statement made in such 
affidavit and shall entitle entitles the plaintiff to the judgment unless rebutted by 
competent and sufficient evidence. When the plaintiff is a corporation, the affidavit may 
be made by its president, vice-president, secretary, treasurer or other person authorized by 
the corporation. If the plaintiff is a debt buyer within the meaning of the Maine Fair Debt 
Collection Practices Act, the affidavit must also conform to the requirements of Title 32, 
section 11019. 
Sec. 2. 32 MRSA §11002, sub-§1-B is enacted to read: 
1-B. Charge-off. "Charge-off' means the act of a creditor removing an account 
from its books as an asset and treating it as a loss or expense because payment is unlikely. 
Sec. 3. 32 MRSA §11002, sub-§5-A is enacted to read: 
5-A. Debt buyer. "Debt buyer" means a person that is regularly engaged in the 
business of purchasing charged-off consumer debt for collection purposes, whether the 
person collects the debt or hires a 3rd party, which may include an attomey-at-law, in 
order to collect the debt. 
"Debt buyer" does not include a supervised financial 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to H.P. 836, L.D. 1199 
organization as defined in Title 9-A, section 1-301, subsection 38-A or a person that 
acquires charged-off consumer debt incidental to the purchase of a po1ifolio 
predominantly consisting of consumer debt that has not been charged off. A debt buyer is 
considered a debt collector for all purposes under this chapter. 
Sec. 4. 32 MRSA §11002, sub-§8-C is enacted to read: 
8-C. Resolved debt. "Resolved debt" means a debt that has been paid, settled or 
discharged in banlm1ptcy. 
Sec. 5. 32 MRSA §11013, sub-§§9 and 10 are enacted to read: 
9. Required information. A debt buyer may not collect or attempt to collect a debt 
unless the debt buyer possesses the following: 
A. The name of the owner of the debt; 
B. The original creditor's name at the time of the charge-off; 
C. The original creditor's account number used to identify the debt at the time of the 
charge-off, if the original creditor used an account number to identify the debt at the 
time of charge-off; 
D. The principal amount due at charge-off; 
E. An itemization of interest and fees, if any, incurred after charge-off claimed to be 
owed and whether those were imposed by the original creditor or any subsequent 
owners of the debt; 
F. If the debt is not from a revolving credit account, the date that the debt was 
incuned or the date of the last charge billed to the consumer's account for goods or 
services received. In the case of debt from a revolving credit account, the debt buyer 
must possess the date of the last extension of credit for the purchase of goods or 
services, for the lease of goods or as a loan of money; 
G. The date and amount of the last payment, if applicable; 
H. The names of all persons or entities that owned the debt after the time of the 
charge-off, if applicable, and the date of each sale or transfer; 
I. Documentation establishing that the debt buyer is the owner of the specific debt at 
issue. If the debt was assigned more than once, the debt buyer must possess each 
assignment or other writing evidencing the transfer of ownership to establish an 
unbroken chain of ownership, beginning with the original creditor to the first debt 
buyer and each subsequent debt buyer; and 
J. A copy of the contract, application or other documents evidencing the consumer's 
liability for the debt. If a signed writing evidencing the original debt does not exist, 
the debt buyer must possess a copy of a document provided to the consumer before 
charge-off demonstrating that the debt was incurred by the consumer or, for a 
revolving credit account, the most recent monthly statement recording the extension 
of credit for the purchase of goods or services, for the lease of goods or as a loan of 
money. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to H.P. 836, L.D. 1199 
10. 
Transfer of ownership of certain debts. 
A debt buyer may not sell or 
otherwise transfer ownership of: 
A. 
A debt without the information and documentation required pursuant to 
subsection 9; or 
B. 
A resolved debt, an interest in a resolved debt or any financial information 
relating to a resolved debt. 
Sec. 6. 32 MRSA §11019 is enacted to read: 
§11019. Collection action by debt buyer 
1. Complaint; required allegations. A debt buyer may not initiate a collection 
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action against a consumer, including an action brought in small claims court pursuant to 
Title 14, chapter 73 8, unless the debt buyer alleges all of the following information in the 
complaint: 
A. The information described in section 11013, subsection 9, including that the debt 
buyer possesses the documentation described in section 11013, subsection 9; 
B. The basis for any interest and fees described in section 11013, subsection 9; 
C. The basis for the request for attorney's fees, if applicable; 
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D. That the debt buyer is the current owner of the debt; and 
E. That the cause of action is filed within the applicable statute of limitations period. 
2. Debt collection complaint; attachments. In a collection action initiated by a 
debt buyer, the debt buyer shall attach all of the following materials to the complaint: 
A. A copy of the contract, application or other document evidencing the consumer's 
agreement to the debt. If a signed writing evidencing the original debt does not exist, 
the debt buyer shall attach a copy of a document provided to the consumer before 
charge-off demonstrating that the debt was incurred by the consumer or, for a 
revolving credit account, the most recent monthly statement recording the extension 
of credit for the purchase of goods or services, for the lease of goods or as a loan of 
money or the last payment or balance transfer; and 
B. A copy of the bill of sale or other writing establishing that the debt buyer is the 
owner of the debt. If the debt was assigned more than once, the debt buyer shall 
attach each assignment or other writing evidencing the transfer of ownership to 
establish an unbroken chain of ownership, beginning with the original creditor to the 
first debt buyer and each subsequent debt buyer. 
3. Requirements for judgment. Regardless of whether the consumer appears in the 
action, the court may not enter a judgment in favor of a debt buyer in a collection action 
against a consumer, including an action brought in small claims court pursuant to Title 
14, chapter 738, unless the debt buyer files with the comt 
A. A copy admissible under the Maine Rules of Evidence of the contract, application 
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or other writing establishing the consumer's agreement to the debt and any contract 
interest or fees alleged to be owed. If a signed writing evidencing the original debt 
does not exist, the debt buyer must file a copy of a document provided to the 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 836, L.D. 1199 
consumer before charge-off demonstrating that the debt was incurred by the 
consumer or, for a revolving credit account, the most recent monthly statement 
recording the extension of credit for the purchase of goods or services, for the lease 
of goods or as a loan of money or the last payment or balance transfer; 
B. Business records or other evidence admissible under the Maine Rules of Evidence 
to establish the amount due at charge-off; 
C. A copy admissible under the Maine Rules of Evidence of each bill of sale or other 
writing establishing transfer of ownership of the debt from the original creditor to the 
debt buyer. If the debt was assigned more than once, the debt buyer must file each 
assignment or other writing evidencing the transfer of ownership to establish an 
unbroken chain of ownership, beginning with the original creditor to the first debt 
buyer and each subsequent debt buyer; and 
D. Notwithstanding any other law, if attorney's fees are sought under contract, a copy 
admissible under the Maine Rules of Evidence of the contract evidencing entitlement 
to attorney's fees. 
Sec. 7. 32 MRSA §11031, sub-§3, 1A, as enacted by PL 1985, c. 702, §2, is 
amended to read: 
A. The superintendent may require such financial statements and references of all 
applicants for a license as he the superintendent deems necessary; and may make or 
cause to be made an independent investigation concerning the applicant's reputation, 
integrity, competence and net worth. The investigation may cover all managerial 
personnel employed by or associated with the applicant. If the applicant is a debt 
buyer, the superintendent shall require documentation that the debt buyer has 
conducted a criminal background check prior to employment on every officer or 
employee of the debt buyer who engages in the active collection of debt for the debt 
buyer or has access to consumer credit infomiation. 
Sec. 8. 32 MRSA §11053, as enacted by PL 1985, c. 702, §2, is amended to read: 
§11053. Civil penalty 
+he Except for a civil action against a debt buyer, the superintendent may, through 
the Attorney General, bring a civil action for a penalty not to exceed $5,000 against any 
person who willfully violates this chapter. The superintendent may, through the Attorney 
General, bring a civil action for a penalty not to exceed $10,000 against a debt buyer who 
willfully violates this chapter. No civil penalty pursuant to this section may be imposed 
for violations of this chapter occun-ing more than 2 years before the civil action is 
brought. 
Sec. 9. 32 MRSA §11054, sub-§1-A is enacted to read: 
1-A. Failure to comply with this Act by a debt buyer. Except as otherwise 
provided by this section, any debt buyer who fails to comply with any provisions of this 
Act with respect to any person is liable to that person in an amount equal to the sum of: 
A. Any actual damage sustained by that person as a result of such failure; 
COMMITTEE AMENDMENT 
COMM!TfEE AMENDMENT" A" to H.P. 836, L.D. 1199 
B. ill the case of any action by an individual, such additional damages as the court 
may allow, but not exceeding $2,000; 
C. In the case of a class action: 
(1) Such amount for each named plaintiff as may be recovered under paragraph 
A; and 
(2) Such amount as the court may allow for all other class members, without 
regard to a minimum individual recove1y, not to exceed the lesser of $500,000 
and 1 % of the net worth of the debt buyer; and 
D. 
In the case of any successful action to enforce the liability set out in this 
subsection, the costs of the action, together with a reasonable attorney's fee as 
determined by the court. On a finding by the court that an action under this section 
was brought in bad faith and for the purpose of harassment, the comt may award to 
the defendant attorney's fees reasonable in relation to the work expended and costs. 
Sec. 10. 32 MRSA §11054, sub"§§2 and 3, as enacted by PL 1985, c. 702, §2, 
are amended to read: 
2. Considerations affecting liability. ill determining the amount of liability in any 
action under subsection 1 or 1-A, the comt shall consider, among other relevant factors: 
A. In any individual action, the frequency and persistence of noncompliance by the 
debt collector or debt buyer, the nature of that noncompliance and the extent to which 
that noncompliance was intentional; or 
B. In any class action, the frequency and persistence of noncompliance by the debt 
collector or debt buyer, the nature of that noncompliance, the resources of the debt 
collector or debt buyer, the number of persons adversely affected and the extent to 
which the debt collector's or debt buyer's noncompliance was intentional. 
3. Defenses. A debt collector or debt buyer may not be held liable in any action 
brought under this chapter if the debt collector or debt buyer shows, by a preponderance 
of evidence, that the violation was not intentional and resulted from a bona fide error, 
notwithstanding the maintenance of procedures reasonably adapted to avoid any such 
error. 
Sec. 11. Application. This Act applies to a debt buyer, as defined in the Maine 
Revised Statutes, Title 32, section 11002, subsection 5-A, with respect to all debt sold to 
that debt buyer on or after Januaty 1, 2018. This Act does not affect the validity of any 
collection actions taken, civil actions or arbitration actions commenced or judgments 
entered into prior to Januaty 1, 2018.' 
SUMMARY 
This amendment makes the following changes to the bill. 
1. 
It clarifies that the definition of "debt buyer" does not apply to a supervised 
financial organization or a person that acquires charged-off consumer debt incidental to 
the purchase of a po1tfolio predominantly consisting of consumer debt that has not been 
charged off. 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT "fe" to H.P. 836, L.D. 1199 
2. It clarifies that debt buyers must conduct criminal background checks on their 
officers and employees who are actively engaged in the collection of debt. The bill 
proposes to require all officers and employees of debt buyers to be licensed as debt 
buyers. 
3. It removes provisions in the bill relating to garnishment of wages. 
4. It modifies the specific documentation that a creditor or debt collector must have 
when collecting or attempting to collect a debt. 
5. It increases the maximum penalties that may be assessed against a debt buyer that 
has violated a provision of the Maine Fair Debt Collection Practices Act. 
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6. It specifies that the provisions of the bill apply to a debt buyer with respect to 
debts sold on or after January 1, 2018. 
FISCAL NOTE REQUIRED 
(See attaebtd) 
COMMITTEE AMENDMENT 
Approved: 06/02/17 feac.. 
LD 1199 
LR 1330(02) 
An Act To Promote Fiscal Responsibility in the Purchasing of Debt 
Fiscal Note for Bill as Amended by Committee Amendment /r(/1-'f!Jl,) 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor savings - General Fund 
Minor revenue decrease - General Fund 
Minor cost increase - Other Special Revenue Funds 
Minor revenue increase - Other Special Revenue Funds 
Correctional and Judicial Impact Statements 
Decreases the munber of civil suits. 
A reduction in filing fees may also increase General Fund revenue by minor amounts. 
Fiscal Detail and Notes 
Any additional costs to the Department of Professional and Financial Regulation to implement the provisions of this 
bill are expected to be minor and can be absorbed within existing budgeted resources. Additionally, individual 
employees of debt buying companies will be required to obtain debt collector licenses, leading to an increase in the 
licensing revenue that is expected to be minimal. 
LR 1330(02) - Fiscal Note - l>Ai:re 1 of 1