Applicants for debt collector licenses must apply through NMLS starting Nov. 1. Licenses will also move from two-year to one-year terms.
09/18/2023 11:35 A.M.
1 minute read
Maine is transitioning debt collection licensees to the Nationwide Multistate Licensing System (NMLS) after new regulations passed this summer.
The new regulations are included as a new chapter (02-030 CMR Ch. 705) under the Bureau of Consumer Credit Protection Regulations: “Establishment of License and Renewal Fees and Application Requirements for Maine’s Debt Collect Licensing and Requirement for Licensing Through the Nationwide Multistate Licensing System.”
The new regulatory chapter and move to NMLS “will provide improved oversight over the activities of the companies, will simplify recordkeeping, and will standardize processes for all debt collectors licensed in Maine,” according to the Maine Bureau of Consumer Credit Protection.
Debt collectors in Maine are required to apply for a license on NMLS between Nov. 1, 2023, and Dec. 31, 2023. Because the new regulations also changed the licensing term in Maine from two years to one year and the expiration date to Dec. 31, licenses scheduled to expire on July 31 were automatically extended to Dec. 31 to allow those licensees time to apply on NMLS.
Licensees with licenses scheduled to expire in the years following 2023 are required to transition to NMLS by Dec. 31, 2023, but will receive a credit of 1/4 of the current two-year license fee for each 1/2 year remaining on its license against the current renewal fee.
New and renewed applications for debt collector licenses must include a completed bond form. The new rules also cover guidance on changes to license information, including that NMLS must approve any change of control in the license submitted by the licensee before it takes effect.
Companies required to obtain a debt collection license in Maine include:
- Those maintaining an office in Maine.
- Those collecting on debts incurred between Maine consumers and a creditor with a business presence in Maine.
- Those soliciting services to Maine creditors.
- Those collecting debt in other states that were originally incurred in Maine.
For more information on how the ACA licensing staff can assist with your licensing application completion needs, please contact us at [email protected] or call (952) 926-6547