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Debt Laws | Federal
Laws | Consumer Protection
State Laws
Maine Fair Credit Billing
1. If a creditor, within 60 days after having transmitted to an obligor a statement of the obligor's account in connection with an extension of consumer credit, receives at the address disclosed under section 8-205, subsection 2, paragraph K, a written notice, other than notice on a payment stub or other payment medium supplied by the creditor if the creditor so stipulates with the disclosure required under section 8-205, subsection 1, paragraph G, from the obligor in which the obligor complies with paragraphs A, B, and C, the creditor shall, unless the obligor has, after giving such written notice and before the expiration of the time limits herein specified, agreed that the statement was correct, comply with subsection 2.
A. The obligor sets forth or otherwise enables the creditor to identify the name and account number, if any, of the obligor. [1981, c. 243, §25 (new).]
B. The obligor indicates the obligor's belief that the statement contains a billing error and the amount of that billing error. [1981, c. 243, §25 (new).]
C. The obligor sets forth the reasons for the obligor's belief, to the extent applicable, that the statement contains a billing error. [1981, c. 243, §25 (new).] [1981, c. 243, §25 (new).]
2. Not later than 30 days after the receipt of the notice described in subsection 1, the creditor shall:
A. Send a written acknowledgment thereof to the obligor, unless the action required in paragraph B is taken within that 30-day period; and [1981, c. 243, §25 (new).]
B. Not later than 2 complete billing cycles of the creditor, in no event later than 90 days, after the receipt of the notice and prior to taking any action to collect the amount, or any part thereof, indicated by the obligor under subsection 1, paragraph B, either:
(i) Make appropriate corrections in the account of the obligor, including the crediting of any finance charges on amounts erroneously billed, and transmit to the obligor a notification of such corrections and the creditor's explanation of any change in the amount indicated by the obligor under subsection 1, paragraph B, and if any such change is made and the obligor so requests, copies of documentary evidence of the obligor's indebtedness; or
(ii) Send a written explanation or clarification to the obligor, after having conducted an investigation, setting forth to the extent applicable the reasons why the creditor believes that account of the obligor was correctly shown in the statement and, upon request of the obligor, provide copies of documentary evidence of the obligor's indebtedness. In the case of a billing error where the obligor alleges that the creditor's billing statement reflects goods not delivered to the obligor or his designee in accordance with the agreement made at the time of the transaction, a creditor may not construe that amount to be correctly shown unless he determines that the goods were actually delivered, mailed or otherwise sent to the obligor and provides the obligor with a statement of that determination.
[1981, c. 243, §25 (new).]
After complying with the provisions of subsections 1 and 2 with respect to an alleged billing error, a creditor has no further responsibility under this section if the obligor continues to make substantially the same allegation with respect to that error. [1981, c. 243, §25 (new).]
3. For the purposes of this section, a "billing error" consists of any of the following:
A. A reflection on a statement of an extension of credit which was not made to the obligor or, if made, was not in the amount reflected on that statement; [1981, c. 243, §25 (new).]
B. A reflection on a statement of an extension of credit for which the obligor requests additional clarification including documentary evidence thereof; [1981, c. 243, §25 (new).]
C. A reflection on a statement of goods or services not accepted by the obligor or his designee or not delivered to the obligor or his designee in accordance with the agreement made at the time of a transaction; [1981, c. 243, §25 (new).]
D. The creditor's failure to reflect properly on a statement a payment made by the obligor or a credit issued to the obligor; [1981, c. 243, §25 (new).]
E. A computation error or similar error of an accounting nature of the creditor on a statement; [1981, c. 243, §25 (new).]
F. Failure to transmit the statement required under section 8-205, subsection 2, to the last address of the obligor which has been disclosed to the creditor, unless that address was furnished less than 20 days before the end of the billing cycle for which the statement is required; and [1981, c. 243, §25 (new).]
G. Any other error described in regulations of the administrator. [1981, c. 243, §25 (new).] [1981, c. 243, §25 (new).]
4. For the purpose of this section, "action to collect the amount, or any part thereof, indicated by an obligor under subsection 1, paragraph B" does not include the sending of statements of account, which may include finance charges or amounts in dispute, to the obligor following written notice from the obligor as specified under subsection 1, if:
A. The obligor's account is not restricted or closed because of the failure of the obligor to pay the amount indicated under subsection 1, paragraph B; and [1981, c. 243, §25 (new).]
B. The creditor indicates the payment of that amount is not required pending the creditor's compliance with this section. Nothing in this section shall be construed to prohibit any action by a creditor to collect any amount which has not been indicated by the obligor to contain a billing error. [1981, c. 243, §25 (new).] [1981, c. 243, §25 (new).]
5. Pursuant to regulations of the administrator, a creditor operating an open-end consumer credit plan may not, prior to the sending of the written explanation or clarification required under subsection 2, paragraph B, subparagraph (ii), restrict or close an account with respect to which the obligor has indicated pursuant to subsection 1 that he believes such account to contain a billing error solely because of the obligor's failure to pay the amount indicated to be in error. Nothing in this subsection prohibits a creditor from applying against the credit limit on the obligor's account the amount indicated to be in error. [1981, c. 243, §25 (new).]
6. Any creditor who fails to comply with the requirements of this section or section 8-402 forfeits any right to collect from the obligor the amount indicated by the obligor under subsection 1, paragraph B, and any finance charges thereon, except that the amount required to be forfeited under this subsection may not exceed $50. [1981, c. 243, §25 (new).]
1. After receiving a notice from an obligor as provided in section 8-401, subsection 1, a creditor or his agent may not directly or indirectly threaten to report to any person adversely on the obligor's credit rating or credit standing because of the obligor's failure to pay the amount indicated by the obligor under section 8-401, subsection 1, paragraph B, and that amount may not be reported as delinquent to any 3rd party until the creditor has met the requirements of section 8-401 and has allowed the obligor the same number of days, not less than 10, thereafter to make payment as is provided under the credit agreement with the obligor for the payment of undisputed amounts. [1981, c. 243, §25 (new).]
2. If a creditor receives a further written notice from an obligor that an amount is still in dispute within the time allowed for payment under subsection 1, a creditor may not report to any 3rd party that the amount of the obligor is delinquent because the obligor has failed to pay an amount which he has indicated under section 8-401, subsection 1, paragraph B, unless the creditor also reports that the amount is in dispute and, at the same time, notifies the obligor of the name and address of each party to whom the creditor is reporting information concerning the delinquency. [1981, c. 243, §25 (new).]
3. A creditor shall report any subsequent resolution of any delinquencies reported pursuant to subsection 2 to the parties to whom such delinquencies were initially reported. [1981, c. 243, §25 (new).]
1. Whenever a credit balance in excess of $1 is created in connection with a consumer credit transaction through transmittal of funds to a creditor in excess of the total balance due on an account, rebates of unearned finance charges or insurance premiums or amounts otherwise owed to or held for the benefit of an obligor, the creditor shall:
A. Credit the amount of the credit balance to the consumer's account; [1981, c. 243, §25 (new).]
B. Refund any part of the amount of the remaining credit balance, upon request of the consumer; and [1981, c. 243, §25 (new).]
C. Make a good faith effort to refund to the consumer by cash, check or money order any part of the amount of the credit balance remaining in the account for more than 6 months, except that no further action is required in any case in which the consumer's current location is not known by the creditor and cannot be traced through the consumer's last known address or telephone number. [1981, c. 243, §25 (new).] [1981, c. 243, §25 (new).]
2. With respect to any sales transactions where a credit card has been used to obtain credit, where the seller is a person other than the card issuer, and where the seller accepts or allows a return of the goods or forgiveness of a debt for services which were the subject of such sale, the seller shall promptly transmit to the credit card issuer, a credit statement with respect thereto and the credit card issuer shall credit the account of the obligor for the amount of the transaction. [1981, c. 243, §25 (new).]
Payments received from an obligor under an open-end consumer credit plan by the creditor shall be posted promptly to the obligor's account as specified in regulations of the administrator. The regulations shall prevent a finance charge from being imposed on any obligor if the creditor has received the obligor's payment in readily identifiable form in the amount, manner, location and time indicated by the creditor to avoid the imposition of a finance charge. [1981, c. 243, §25 (new).]
ME Maine Official State Statutes
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