HP0421
LD 602
Session - 126th Maine Legislature
 
LR 1061
Item 1
Bill Tracking, Additional Documents Chamber Status

An Act Regarding the Regulation of Consumer Finance Companies

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 9-A MRSA §2-401, sub-§2,  as amended by PL 1997, c. 727, Pt. B, §10, is further amended to read:

2.   With respect to a consumer loan, other than a loan pursuant to open-end credit, a lender may contract for and receive a finance charge calculated according to the actuarial method, not exceeding the equivalent of the following:
A. The total of:

(i) 30% per year on that part of the unpaid balances of the amount financed that is $2,000 $4,000 or less;

(ii) 24% per year on that part of the unpaid balances of the amount financed that is more than $2,000 $4,000 but does not exceed $4,000 $8,000; and

(iii) 18% per year on that part of the unpaid balances of the amount financed that is more than $4,000 $8,000.

Notwithstanding paragraph A, with respect to a consumer loan in which the amount financed exceeds $8,000 $12,000, a lender may not contract for and receive a finance charge calculated according to the actuarial method in excess of 18% per year on the entire amount of the loan.

summary

This bill updates the allowable finance charges on consumer loans by companies subject to the Department of Professional and Financial Regulation, Bureau of Consumer Credit Protection.


Top of Page