- Legal: 8%
- Post Judgment: 15% annual (less than $30,000) T-Bill rate over $30,000
STATUTE OF LIMITATIONS (IN YEARS)
- Open Acct.: 6
- Written Contract: 6 + 20 (with attestment)
- Domestic Judgment: 20
- Foreign Judgment: 20
Maine's Consumer Credit Code regulates all Consumer Credit Transactions (secured
If a debtor defaults by failing to make payments within 10 days of the due
date, M.R.S.A sections 5-510 & 5-511 require that a debtor be sent a written
notice to cure prior to enforcing any contractual remedies including accelerating
the balance due or retaking possession of the secured property.
A creditor must issue a (14) fourteen day written notice of default. The notice
must describe the alleged default and allow the borrower a right to cure the
default. The notice must include the name and telephone number of the creditor,
the amount of the payment needed to cure the default, and the last date payment
must be made. Notice may be sent by regular mail or by certified mail. The
14 day time period to cure does not begin until the consumer actually receives
If the notice is sent by ordinary first class mail, the date of receipt is
determined by the date the consumer receives the mail. If a post office certificate
is obtained, the date of receipt by the consumer will be judicially presumed
to occur on the third (3rd) Calendar Day after mailing. The Maine Supreme Court
addressed this issue in Griffin v. Chrysler Credit Corp., 553 A.2d 653 (ME
1989), and upheld this mandatory presumption. Thus, the creditor knows the
exact date to start the 14 day cure period.
If the notice is sent by Certified Mail, Return Receipt Requested, the date
of receipt is determined by the date the consumer signs for the receipt, or
the last date that delivery was attempted on unclaimed certified mail.
The burden of proof is on the Creditor to establish that the notice was received.
Thus, it is recommended that the creditor mail the notice by first class mail
and obtain a post office certificate of mailing. Without proof of compliance,
a lawful act, such as a peaceful repossession, could turn wrongful and exposes
the creditor to liability under state and federal laws.
If the debtor defaults again within 365 days (1 Year) from the date of the
original default, the creditor is not required by statute to send an additional
The creditor may not enforce its remedies under the loan agreement during the
14 day period. It is recommended not to count the first and last day during
this time period. In the case of a secured transaction, it is permissible
to accept a voluntary surrender of the collateral during this cure period
(M.R.S.A. Section 5-111(3).
Maine Borrowing Statute
M.R.S.A. 14 § 866. (2003)
§ 866. Defendant out of State when action commenced; insolvency
If a person is out of the State when a cause of action accrues against
him, the action may be commenced within the time limited therefor after
he comes into the State. If a person is absent from and resides out of
the State, after a cause of action has accrued against him, the time of
his absence from the State shall not be taken as a part of the time
limited for the commencement of the action. If a person is adjudged an
insolvent debtor after a cause of action has accrued against him, and
such cause of action is one provable in insolvency, the time of the
pendency of his insolvency proceedings shall not be taken as a part of
the time limited for the commencement of the action.
No action shall be
brought by any person whose cause of action has been barred by the laws
of any state, territory or country while all the parties have resided