Maine Debt Collector or Repossessor Bond Guide
If you're applying for a debt collector license in Maine, you'll need to purchase a surety bond. Read on to learn all about the bonding process.
Bond Overview
- Purpose: To ensure collectors and repossessors pay all sums due and/or deliver repossessed property
- Who Needs It: All debt collectors applying for a business license in Maine
- Regulating Body: The Maine Bureau of Consumer Credit Protection
- Required Coverage: $5,000–$50,000, based on amount of annual gross collections
- Premium Rates: Start at 1% of the bond amount, credit-based
How much does a debt collector’s bond cost in Maine?
The Maine Bureau of Consumer Credit Protection requires debt collectors in the state to be bonded. The required bond amount varies with the type of debt collection and the amount of gross collections on behalf of Maine creditors each year.
Maine debt collector or repossession bonds are subject to underwriting, which means the price you’ll pay for your bond depends on your required bond amount and personal credit report.
With good credit, applicants could pay as little as 1% of their required bond amount. Request a free bond quote now.
Why are debt collectors and repossessors bonded?
Maine debt collector surety bonds ensure that principals (debt collectors) report and pay all sums due and/or deliver all repossessed property to customers within 30 days of the close of each calendar month in which the collections were made/property was repossessed. These bonds also ensure that principals strictly, honestly and faithfully comply with all provisions of state law, including Title 32, M.R.S.A., Section 11011 to 11054.
The bond covers all claims collected, property converted and losses suffered by any person as a result of the principal’s unethical or unlawful business practices up to the full bond amount.
What’s the fine print?
Collector/repossession bonds in Maine are continuous until canceled. To cancel the bond, the surety must give written notice of cancellation via certified mail with receipt requested to the principal and the Superintendent of the Bureau of Consumer Credit Protection of the State of Maine. The notice must be received 30 days prior to the effective date of termination.
We'll upload the bond directly to NMLS on your behalf after purchase. You will not receive a physical bond form.
How to become a debt collector in Maine
To become a licensed debt collector in Maine, applicants must submit an application packet along with the following materials:
- $600 initial application fee or $300 renewal application fee
- surety bond in the proper amount
- fingerprint cards for the owner (sole proprietor) and each partner (partnership) or officer (corporation), as applicable
- financial statement prepared by an accountant
- copy of any contract to be used with clients
- specimen form letters
- listing sheets
- remittance sheets
- work cards
Debt collector/repossessor licenses in Maine remain effective for up to 2 years. The scheduled renewal date for applicants with names beginning with the letters A through M is July 31 of every even year. The scheduled renewal date for applicants with names beginning with the letters N through Z is July 31 of every odd year.
Take the first step toward becoming a licensed debt collector today by submitting a bond quote request!
