Sec. 1. 9-A MRSA §2-501, sub-§1, ¶G, as amended by PL 1997, c. 94, §1, is repealed and the following enacted in its place:

G. Delinquency charges under section 2-502 and deferral charges under section 2-503.

Sec. 2. 9-A MRSA §2-501, sub-§4, ¶E, as enacted by PL 1995, c. 137, §5, is repealed.

Sec. 3. 9-A MRSA §2-502, sub-§1, as amended by PL 1999, c. 184, §4, is further amended to read:

1. With respect to a precomputed consumer credit transaction, a consumer lease or a fixed-rate consumer credit transaction that is not made pursuant to open-end credit and that is secured only by an interest in real estate, the parties A creditor may contract for and receive a delinquency charge on any outstanding, unpaid installment payment or portion of such payment due under a consumer credit transaction or open-end credit plan not paid in full within 15 days after its scheduled or deferred due date in an amount not exceeding the greater of:

A. An amount, not exceeding $10, which that is 5% of the unpaid amount of the installment; or

B. The deferral charge, section 2-503, that would be permitted to defer the unpaid amount of the installment for the period that it is delinquent.

SUMMARY

Under current law, state-chartered lenders can assess fees on delinquent accounts only if the delinquent account is precomputed with respect to interest, is a consumer lease or credit card account or is a fixed rate, closed-end mortgage. This bill permits Maine lenders to assess late fees for all consumer credit transactions, subject to the restrictions as set forth in the Maine Revised Statutes, Title 9-A, section 2- 502, to place them on a more equal footing with out-of-state lenders.