4. A civil action by an aggrieved consumer in which that consumer has the right to recover actual damages from the credit services organization loan broker in an amount determined by the court, plus costs of the action together with reasonable attorney's fees; and

5. Revocation, suspension or nonrenewal of its registration pursuant to section 2-303 license.

SUMMARY

This bill changes the title of the Maine Revised Statutes, Title 9-A, article 10 from "Maine Consumer Credit Code - Credit Services Organizations" to "Maine Consumer Credit Code - Loan Brokers." It enhances regulation of loan brokers. It changes references to "credit services organization" to "loan broker," a descriptive term better understood by the industry and consumers. It also changes the state application process from a registration process to a licensure process and from an annual application to a biennial application. Because the current $10,000 bond has proven inadequate to cover losses caused by loan brokers in several cases in 2004, the bill increases the surety bond to $25,000. To improve accountability, the bill requires that license numbers appear in print advertising placed by a loan broker. Finally, this bill permits regulators to follow the lead of most other states by establishing a system of continuing education, so that loan brokers will be more knowledgeable in serving consumers.