A Comprehensive Guide To The Debt Collection Laws in Maine

The average Mainers are in better financial shape than residents in many other states. However, debt cannot be abided by state lines and can occur for various reasons, such as job loss, poor money management, etc.

Knowing the debt collection laws can help a lot in situations like this to stay protected from being harassed by the debt collector.

This article will cover all the pertinent details regarding Maine debt collection laws.

Debt Collection Laws in Maine: Everything You Need to Know

Debt collectors' limitations in Maine

If Maine residents want to learn about debt collection laws, they should first learn about the federal Fair Debt Collection Practices Act (FDCPA). This law limits debt collectors while protecting debtors from unfair, abusive, and deceptive practices.

The Maine Fair Debt Collection Practices Act governs what a debt collector can and cannot do when trying to collect a debt from a debtor.

The debt collectors:

• Can contact the debtor only between 8 a.m. and 9 p.m.
• Collectors only discuss the debt with the borrower, spouse, attorney, or executor.
• Cannot curse or threaten to harm the debtor or the debtor's property.
• Cannot threaten with illegal actions.
• They cannot falsely threaten to take actions they do not intend to take.
• They cannot call the debtor repeatedly to annoy or harass him.
• They are not allowed to make false or misleading statements.
• They cannot contact the debtor directly if informed that a legal counsel represents them. Once the debt collection agency knows that the debtor has hired a lawyer, they must engage in future discussions with their lawyer first.
• They cannot communicate with the debtor at work if they are aware or have reason to believe that the debtor's employer forbids such communication.
• They cannot communicate with the debtor if they notice that they no longer wish to be contacted.

However, under the last rule, the debt collector can still communicate with the debtor to inform them that -

1. They will no longer pursue debt; or
2. They intend to pursue a different path to recover the debt, usually through the courts.

In addition, according to the law of Maine, the debt collection agency must validate the debt the debtor allegedly owes. The debt collector should complete this within five days of the initial communication with the debtor regarding the debt.

What are the Wage Garnishment Requirements in Maine?

Wage garnishments are subject to specific rules in Maine.

The federal law in Maine limits the wage garnishment per pay period by -

• 25% of a debtor's disposable earnings; or
• The amount by which the borrower's disposable earnings are greater than 30 times the federal minimum wage – whichever is lower

Exemptions also limit the garnishment amount for each pay period. Exemptions in Maine include:

• Social Security benefits
• Alimony
• Veterans' benefits
• Benefits for disability, illness, or unemployment
• Payments or accounts under a Maine-law stock bonus, pension, profit-sharing, annuity, individual retirement account, or another similar plan

Preventing a Wage Garnishment in Maine

There are two ways to prevent wage garnishment in Maine.

First, the debtor can agree with the judgment and pay the debt in whole or in installments.

Second, the debtor has the option of declaring bankruptcy. When the debtor files for bankruptcy, the court issues an automatic stay, which prevents most collection actions, including wage garnishment, from proceeding.

If approved, many of the debtor's debts will be discharged, which means creditors will be unable to garnish the borrower's wages in the future.

What To Do If a Debtor Receives Debt Collection Letters in Maine

The first step after receiving collection letters should be to confirm the debt. It is substantial because people may receive these letters even after they have paid the debt or even when it is not theirs.

If the debtor is confident that the debt is not theirs, they can respond by writing to the creditor and informing them that they do not owe the debt.

Debtors in Maine have 30 days from the date they receive the first written notice to request verification or dispute the debt. The debt collector must halt collection efforts upon receiving this notice but can resume after sending the debtor evidence that they owe the debt.

The debtor can request verification by mailing a letter to the collection agency requesting documentation of the debt. It is also critical for the debtor to state that they are unsure of the debt's validity and to ask for the name and address of the original creditor.

The collector's debt validation must include the following information:

• The exact amount of debt the debtor supposedly owes.
• The original creditor's name to whom the debt is owed (if the original creditor sells the debt to a debt collection agency).
• A statement declaring that the debt collector will assume the debt is valid if the debtor does not dispute it within 30 days.
• A statement informs that if the debtor disputes the debt within 30 days, the debt collector will prove its validity.

All the activities regarding the collection should legally stop if the debt collection agency cannot prove that the debt belongs to the borrower.

Maine Debt Collection Statute of Limitations

The Statute of Limitations limits the time debt collectors file a lawsuit to collect money owed on a debt.

The Statute of Limitations on debt in Maine is six years, beginning when the borrower ceases to make regular payments.

After the Statute of Limitations on debt expires, the debt collector can no longer sue the borrower. They can, however, continue to call and write about the debt in an attempt to recover it.

In this circumstance, it is necessary that the borrower not make any payments or even promise to make any payments. It legally restarts the Statute of Limitations and provides the debt collector with another opportunity to take the debtor to court.

What can the debtor do if the debt collector violates the debt collection laws in Maine?

Suppose the debt collector violates the law or the debtor wishes to report harassment or abusive behavior. In that case, the debtor may file a complaint with the Office of the Maine Attorney General or the CFPB.

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Maine Debt Relief Options

If one cannot pay their debt in Maine, there are several debt relief options, including debt consolidation, debt management, and bankruptcy.

Because each option takes a different approach, it is best to learn about them and select the best one for one's situation.

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Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified attorney for advice on your specific situation.