Section 030-190-4 - GENERAL POLICIESA. Rules of Application. (1) These policies and remedies represent the standards to be used by the Bureau in enforcing the Code. The Bureau retains the authority to take appropriate alternative action pursuant to Article VI of the Code.(2) Credit transactions (a) Except as specifically noted below, these guidelines apply to all consumer credit transactions within the jurisdiction of the Code.(b) The guidelines do not apply to the following:(i) advertising (Section 3-201); and(ii) licensing of supervised lenders, Article II, Part 3.B. Violations Subject to Corrective Action. Violations subject to corrective action include the following: (1) Violations involving the failure to correctly disclose required information, which may or may not involve overcharges;(2) Violations involving overcharges, except that violations involving overcharges of less than $1.00 per individual account will not be subject to reimbursement unless the Bureau determines they are part of a consistent pattern, or due to gross negligence or a willful violation of the Code;(3) Violations involving practices of the creditor prohibited by the Code; and(4) Violations involving the use of agreements prohibited by the Code.C. Period for which Corrective Action Required. Except as otherwise provided in this Rule, corrective action shall be required on all consumer credit transactions within the scope of the Code and to which the record retention provisions of Regulation Z-2 and § 1-111 apply. In other words, corrective action may be required for Truth-in-Lending violations for a period of two years following the date disclosure was required to be given, and for Articles I through VI violations, for a period of two years after final entry on the account for closed-end transactions and two years after the most recent entry on the account for open-end transactions.D. Disclosure of Reason(s) for Corective Action. Whenever corrective action is taken, the creditor must clearly inform the consumer that the action is being taken because of the creditor's failure to comply with the Maine Consumer Credit Code. The notice will further inform the consumer of the specific violation and, in the case of corrective action involving reimbursement of any kind, clearly inform the consumer of his unqualified right to keep such reimbursement.E. Procedures for Corrective Action.(1) Within 60 days of receipt by the creditor from the Administrator of the written notice of one or more alleged violations, the creditor shall: (a) submit further information or documents relevant to a report of examination or notice of alleged violation which demonstrate to the Administrator that a violation has not occurred;(b) by written notice to the Administrator, contest the written notice of alleged violations pursuant to subsection F; or(c) proceed under subsection (E)(2) of this Section.(2) With respect to a notice of alleged violation not contested by the creditor, the creditor shall, within 60 days of receipt, take the appropriate corrective action required by Section 5 of this Rule. Extension of this time period may be granted by the Administrator for good cause, but such extension shall not affect § 5-201(7) or § 8-208(2). Failure to comply with this paragraph shall automatically result in notification by the Bureau of the alleged violations to all parties to the transactions pursuant to subsection G.F. Contested Findings. (1) The administrator shall attempt to resolve disputes first by informal means, including the negotiation of an Assurance of Discontinuance (§ 6-109).(2) Failure to resolve the disputed findings of violation by informal means may result in the use by the Administrator or recommendation to the Attorney General of one or more formal enforcement options set forth in the Code: administrative enforcement orders (§ 6-108 ); injunction against violations (§ 6-110); injunction against unconscionable agreements or conduct (§ 6-111); civil actions to seek damages, refunds or penalties in appropriate cases (§ 6-113); temporary injunctions (§ 6-112); or criminal penalties (§§ 5-301, 8-109 ).G. Notification of Consumer. Pursuant to § 6 -106(1), the Administrator shall notify all parties to a consumer credit transaction that an alleged violation has occurred and their legal options regarding that violation if: (1) The creditor contests the notice of alleged violation, in which case the notice will also inform consumers that the creditor disputes the alleged violation;(2) The creditor does not contest the notice of alleged violation but fails to take the appropriate corrective action within the time period specified in subsection E(2); or(3) The alleged violation is determined to be an obvious error under subsection H and is not subject to administrative corrective action involving overcharges under § 5(C). The Administrator may permit notice from the creditor that may be required under § 5(B) to suffice for any notice that would otherwise be sent by the Administrator, provided that the Administrator has the opportunity to review the creditor's notice, and modify it if necessary, before it is sent.H. Obvious Error. (1) An "obvious error" is one in which the APR was disclosed correctly, but the finance charge required to be disclosed was understated, or the finance charge was disclosed correctly but the APR required to be disclosed was understated, and the error involved a disclosure which was 10% or less of the amount that should have been disclosed.(2) Except for the provisions of § 5(A) and (B), an obvious error will not be subject to administrative remedy unless the Administrator finds that the error resulted from gross negligence or a willful intent to deceive the consumer.I. Agency Discretion. Corrective action will not be required if the Administrator determines that the violation resulted from any unique circumstances involving a clearly technical and non-substantive violation and which, in the case of disclosure, did not adversely affect the information provided to the consumer and did not mislead or otherwise deceive the consumer.02-030 C.M.R. ch. 190, § 4