An Act To Amend the Maine Fair Debt Collection Practices Act
Maine Legislature, Session 130, LD 1561
Committee: Health Coverage, Insurance and Financial Services
Sponsors: SANBORN
Amends: 32 MRSA §11013, 32 MRSA §11019, 32 MRSA §11020

Legislative Document
No. 1561
S.P. 503
In Senate, April 22, 2021
An Act To Amend the Maine Fair Debt Collection Practices Act
Received by the Secretary of the Senate on April 20, 2021.  Referred to the Committee on 
Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator SANBORN of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  32 MRSA §11013, sub-§11 is enacted to read:
11.  Collection action prohibited on debt from medical expenses if eligible for 
charity care.  A debt collector may not collect or attempt to collect a debt from medical 
expenses against a consumer who has been determined to be qualified for charity care under 
guidelines adopted pursuant to Title 22, section 1716 or against a consumer who would 
have been determined to be qualified for charity care under guidelines adopted pursuant to 
Title 22, section 1716 but did not apply for good cause.
Sec. 2.  32 MRSA §11019, as enacted by PL 2017, c. 216, §6, is amended to read:
§11019.  Collection action by debt buyer
1.  Complaint; required allegations.  A debt buyer may not initiate a collection action 
against a consumer, including an action brought in small claims court pursuant to Title 14, 
chapter 738, 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;
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 court:
A.  A copy, admissible under the Maine Rules of Evidence the evidentiary standard set 
forth in subsection 4, of the contract, application 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 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 
the evidentiary standard set forth in subsection 4 to establish the amount due at charge-
off;
C.  A copy, admissible under the Maine Rules of Evidence the evidentiary standard set 
forth in subsection 4, 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 to the contrary, if attorney's fees are sought under 
contract, a copy, admissible under the Maine Rules of Evidence the evidentiary 
standard set forth in subsection 4, of the contract evidencing entitlement to attorney's 
fees.
4.  Evidentiary standard.  In order to introduce business records into evidence 
sufficient to obtain a judgment, a debt buyer shall authenticate those business records 
through the testimony of a witness who demonstrates personal knowledge of the business 
practices:
A.  For creating, maintaining and transmitting the records at issue of each entity that 
owned the debt; and
B.  In obtaining and integrating the records at issue into its own business records of 
each entity that purchased the debt.
Sec. 3.  32 MRSA §11020 is enacted to read:
§11020.  Collection action to collect credit card and student loan debts; additional 
requirements for collection action
1.  Applicability.  This section applies to any collection action against a consumer to 
collect a credit card or student loan debt initiated by a debt collector. 
2.  Commencement of collection action.  A collection action under this section may 
not be commenced in small claims court pursuant to Title 14, chapter 738. A collection 
action is commenced upon the filing or serving of a complaint that provides notice of the 
complaint in the same manner as other civil complaints and satisfies the requirements of 
this section.
3.  Notice of complaint.  In a collection action subject to this section, the debt collector 
shall attach to the front of the complaint a one-page form notice to the consumer as 
developed by the Department of Professional and Financial Regulation, Bureau of 
Consumer Credit Protection. The form notice must be written in language that is plain and 
readily understandable by the general public and, at a minimum, must contain the 
following: 
A.  A statement that failure to answer the complaint may result in an entry of judgment 
in the amount demanded by the debt collector; and 
B.  A sample answer and an explanation that the consumer may fill out the form and 
return it to the court as the answer to the complaint. 
If the consumer returns the form to the court, the consumer does not need to file a more 
formal answer or responsive pleading.
4.  Entry of judgment.  A court may not enter a judgment unless it specifically finds 
that all the requirements of this section and all other applicable requirements of this chapter 
are met, including, but not limited to, that the plaintiff has produced evidence that is 
admissible pursuant to the evidentiary standard set forth in section 11019, subsection 4 and 
the Maine Rules of Evidence.
5.  Default judgment.  If the defendant has failed to plead or otherwise defend, the 
plaintiff may apply for entry of default and a default judgment. The court is responsible for 
entering a default and a default judgment, not the clerk of the court. Regardless of whether 
the defendant appears in the action or the judgment is based on a proposed order concerning 
a settlement, the court may not enter judgment in favor of the plaintiff unless the court 
determines that all the requirements of this section and all other applicable requirements of 
this chapter are met, including, but not limited to, that the plaintiff has produced evidence 
admissible pursuant to the evidentiary standard set forth in section 11019, subsection 4 and 
the Maine Rules of Evidence on all required elements of the plaintiff's claim. 
6.  Exclusion.  This section does not apply to any collection action brought by a 
supervised financial organization as defined in Title 9-A, section 1-301, subsection 38-A. 
7.  Rules.  The court may adopt rules necessary to implement the provisions of this 
section.
SUMMARY
This bill makes the following changes to the Maine Fair Debt Collection Practices Act.
1.  It prohibits a debt collector from collecting or attempting to collect a debt from 
medical expenses against a consumer who has been determined to be qualified for charity 
care or who would have been determined to be qualified but did not apply for good cause.
2.  It specifies the evidentiary standard that applies in the case of a debt buyer in a 
collection action against a consumer.
3.  It sets standards for collection actions initiated by a debt collector against a 
consumer to collect a credit card or student loan debt.