An Act To Facilitate Small Loans in Maine
Sec. 1. 9-A MRSA §2-311 is enacted to read:
§ 2-311. Small loan requirements
A lender providing a small loan must comply with the following requirements. For purposes of this section, "small loan" means a loan in an amount of $2,000 or less.
Sec. 2. 9-A MRSA §2-401, sub-§2, as amended by PL 1997, c. 727, Pt. B, §10, is further amended to read:
(i) 30% per year on that part of the unpaid balances of the amount financed that is $2,000 or less;
(ii) 24% per year on that part of the unpaid balances of the amount financed that is more than $2,000 but does not exceed $4,000; and
(iii) 18% per year on that part of the unpaid balances of the amount financed that is more than $4,000.
Notwithstanding paragraph A, with respect to a consumer loan in which the amount financed exceeds $8,000, 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.
Sec. 3. 9-A MRSA §2-402, sub-§1, as amended by PL 1987, c. 129, §44, is further amended to read:
Sec. 4. 9-A MRSA §2-403 is enacted to read:
§ 2-403. Finance charge for small loans
A supervised lender offering a small loan in compliance with the requirements under section 2-311 may charge the following fees in addition to the interest rate allowed under sections 2-401 and 2-402:
This bill amends the Maine Consumer Credit Code. It enacts requirements for loans of $2,000 or less and it authorizes consumer loan lenders and open-end credit creditors to charge origination fees and monthly maintenance fees.