9-A §8-401. Correction of billing errors - Maine Statutes

Title 9-A: MAINE CONSUMER CREDIT CODE

Article 8: TRUTH-IN-LENDING

Part 4: FAIR CREDIT BILLING

§8-401. Correction of billing errors

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) .]

SECTION HISTORY

1981, c. 243, §§25,26 (NEW). 1981, c. 551, §3 (AMD).