Collection Agencies, Repo Companies, and Property Preservation

• A person needs to be licensed as a debt collector in this State if the principal purpose of their business is the collection of any debts directly or indirectly owed or due or asserted to be owed or due another. A license is required if the debt collector is located in Maine or if the debt collector, wherever located, attempts to collect debts incurred between a Maine resident and a business located in Maine. In addition, a license is required if the debt collector engages in face-to-face solicitation of creditors in this State as clients, or if the debt was originally incurred in Maine.
• The initial application fee for licensure is $400.00. The initial application fee for a branch license is $200.00
• A license is effective for one year, expiring December 31st of each year.
• A bond (RTF) must accompany each application. The terms of the bond must run concurrent with the period of time during which the license will be in effect. The size of the bond varies with the type of debt collection and the Gross Collections on behalf of Maine creditors each year. A new applicant undertaking direct collections must obtain a bond in the amount of $20,000.00. A new applicant that limits their activities to repossessions or residential property preservation needs a $15,000.00 bond. A letter writing company must obtain a $5,000.00 bond.
• Upon renewal, licensees whose gross Maine collections for the year average over $40,000.00 per month are required to procure a $50,000.00 bond; licensees whose gross collections are between $30,000.00 and $40,000.00 need a $45,000.00 bond; licensees whose gross Maine collections are between $20,000.00 and $30,000.00 per month need a $35,000.00 bond; those whose gross Maine collections average between $10,000.00 and $20,000.00 are required to obtain a $25,000.00 bond; while licensees whose gross Maine collections are under $10,000.00 per month are required to obtain a bond in the amount of $15,000.00. A $15,000.00 bond is required for renewal as a repossession agent and a $5,000.00 bond is required to renew the license of a letter writing company that makes no direct collections.
• A financial statement prepared by an accountant consisting of a Review Report or Audited Report must accompany each application.
• All monies collected on behalf of Maine creditors must be maintained in a trust account to be used solely for Maine clients.
• For repossession companies, Maine law requires all personal effects taken with repossessed collateral (such as items in a repossessed vehicle) must be inventoried and made available to the consumer at a time and place convenient to the consumer.

Detailed requirements for licensure as a debt collector are contained in Bureau Rule 705.

Despite our efforts to be accurate, these pages may contain errors. We present this website to you with a good-faith representation that the information it contains is generally reliable. Information on this site should not be relied upon for legal purposes. If you need further information, we would encourage you to contact us directly or seek the advice of a professional.