Maine Medical Debt Collection Laws: What You Need to Know

Over 40 percent of Maine residents carry medical debt. State lawmakers recently passed new protections to help you fight back against aggressive collectors.

The law, titled “An Act to Prohibit Unfair Practices Related to the Collection of Medical Debt,” amends Maine’s Fair Debt Collection Practices Act. The changes limit fees, interest, and litigation tactics used by medical debt collectors.

If you’re facing medical debt in Maine, you now have stronger legal protections.

Debt Collectors Cannot Charge Interest or Fees on Medical Debt

Maine’s new law prohibits debt collectors from charging interest or fees on medical debt. Any attempt to collect these charges is now considered an unfair practice.

The law specifically targets fees and interest that debt collectors know are related to medical debt. Collectors who violate this rule engage in false or misleading representation.

You can challenge any interest or fees added to your medical bills.

Income Protection Rules Limit Lawsuits

Debt collectors must now follow strict income verification rules before suing you. They cannot pursue litigation if your household income is 300 percent or less of federal poverty guidelines.

Collectors must send written notice explaining these income limits. You then have 30 days to provide evidence of your household income.

If your income falls below the threshold, collectors are prohibited from filing lawsuits. You gain significant protection from court actions if you meet income requirements.

Collectors who threaten litigation to compel payment engage in false, deceptive, or misleading representation. Our partner Solo can help you respond if a collector violates these rules.

What Qualifies as Medical Debt Under Maine Law

The law defines “medical debt” as debt from health care services or goods. Medical services include dental care and related treatments.

Health care goods include products, devices, durable medical equipment, and prescription drugs.

What’s NOT Included

Several types of debt fall outside this definition:

• Veterinary services
• Debt charged to general-purpose credit cards
• Home equity or general purpose lines of credit
• Secured debt

Medical bills charged to regular credit cards don’t receive these protections. Only medical credit cards issued specifically for health care services qualify.

The law doesn’t prohibit credit reporting of medical debt. Collectors can still sell medical debt to other agencies.

Statute of Limitations Still Applies

Maine’s statute of limitations on debt is six years. The clock starts from your last activity on the account.

If a collector contacts you about old medical debt, check the dates. You may have a valid defense if the debt exceeds six years.

Collectors cannot sue you for time-barred debt. Raise the statute of limitations as a defense if they try.

How to Respond If You’re Sued for Medical Debt

Medical debt lawsuits require specific procedural steps under the new law. Collectors must send income verification notices before filing suit.

If a collector sues you without sending this notice, you have grounds to challenge the lawsuit. Point out this procedural error in your response.

When you receive an income notice, you have 30 days to respond. Provide documentation showing your household income falls below 300 percent of federal poverty guidelines.

Always respond to a lawsuit summons. Failing to respond results in a default judgment against you.

Your response prevents automatic losses and gives you time to negotiate. Our partner Solo helps you draft and file proper answers to debt collection lawsuits.

Verify the Debt Is Actually Yours

Debt collectors must prove you owe the medical debt. Don’t accept their claims without verification.

Request the following information in writing:

• Full name of the original creditor
• Original debt amount
• Date the debt was incurred
• Insurance coverage applied, if applicable
• Payment history on the account
• Current outstanding balance
• Documentation linking you to the debt

Some collectors back off when you request verification. They may lack proper documentation to prove the debt.

If they provide verification, you’ll know exactly what you’re dealing with. Review all documents carefully for errors or discrepancies.

Negotiate a Settlement for Less Than You Owe

Verified medical debt doesn’t mean you must pay the full amount. Collectors often accept reduced payments to avoid litigation costs.

Start by offering 60 percent of the total balance. Many collectors negotiate from this starting point.

Debt collectors want to recover something rather than nothing. They may prefer settlement over expensive court proceedings.

Get any settlement agreement in writing before making payments. Confirm the collector will report the debt as settled to credit bureaus.

Important Rules for Medical Debt on Credit Cards

Medical bills charged to general-purpose credit cards fall outside these protections. The law only covers medical credit cards issued specifically for health care.

If you used a regular credit card for medical expenses, standard credit card debt rules apply. You won’t benefit from the interest and fee prohibitions.

Consider your payment options carefully before charging medical bills to non-medical credit cards.

Key Changes Under the New Law

Maine’s medical debt law makes collection significantly harder for debt collectors. You gain multiple new protections.

No Interest or Fees

Collectors cannot add interest or collection fees to medical debt. Any charges beyond the original amount violate the law.

Income Verification Requirements

Collectors must determine whether they can sue based on your household income. They must send notices and wait 30 days for your response.

Income below 300 percent of federal poverty guidelines blocks lawsuits.

New Collector Procedures

Debt collectors must modify their standard collection letters. They need new procedures and training to comply with income verification rules.

You can challenge collection attempts that don’t follow proper procedures.

Take Action to Protect Your Rights

Maine’s new medical debt protections give you powerful tools against collectors. Know your rights and use them.

Challenge any interest or fees on medical debt. Request income verification notices before any lawsuit.

Always verify the debt belongs to you. Negotiate settlements when possible to resolve debt for less.

Don’t ignore collection letters or lawsuits. Respond promptly to preserve your legal defenses and negotiating power.