Sec. 1. 9-A MRSA §2-202, sub-§7, as amended by PL 1999, c. 184, §1, is further amended to read:

7. With respect to consumer credit sales made pursuant to a credit card, other than a lender credit card, a creditor may not impose a finance charge if it is in excess of that set forth in the agreement between the consumer and the creditor 18% per year on the unpaid balance on the credit card.

Sec. 2. 9-A MRSA §2-202, sub-§8 is enacted to read:

8.__With respect to a consumer credit sale made pursuant to open-end credit, a creditor shall notify a consumer prior to instituting an increase in the percentage used to determine a finance charge, even if the increase is generally described and set forth in the agreement between the creditor and the consumer.

Sec. 3. 9-A MRSA §2-402, sub-§5, as enacted by PL 1993, c. 618, §2, is amended to read:

5. With respect to loans made pursuant to a lender credit card, a creditor may not impose a finance charge if it is in excess of that set forth in the agreement between the consumer and the creditor 18% per year on the unpaid balance on the credit card.

Sec. 4. 9-A MRSA §2-402, sub-§6 is enacted to read:

6.__With respect to loans made on open-end credit, a creditor shall notify a consumer prior to instituting an increase in the percentage used to determine a finance charge, even if the__increase is generally described and set forth in the agreement between the creditor and the consumer.

SUMMARY

This bill establishes a cap on the percentage of interest rates on credit card balances at 18% per year. This bill also requires creditors to notify consumers before raising the percentage of interest rates on credit card balances, even if the increase is described in the credit agreement between the creditor and consumer.