An Act Relating to Payday Loans

Sec. 1. 9-A MRSA Art. 3, Pt. 6  is enacted to read:

PART 6

PAYDAY LOANS

§ 3-601.   Payday loan; definition

"Payday loan" means a supervised loan or other credit transaction in which a cash advance is made to a consumer in exchange for the consumer's personal check or in exchange for the consumer's authorization to debit the consumer's deposit account and when the parties agree either that the check will not be cashed or deposited or that the consumer's deposit account will not be debited until a designated future date.

§ 3-602.   Territorial application

Notwithstanding section 1-201, this Act applies to a payday loan transaction if the lender, wherever located, enters into a payday loan transaction with a consumer who is located in this State.

SUMMARY

This bill defines "payday loan" and also clarifies that the Maine Consumer Credit Code applies to a payday lender, wherever located, that makes a payday loan to a consumer located in this State.