Sec. 6. 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: 29% per year on the unpaid balance of the amount financed.

A. The total of:

(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. 7. 9-A MRSA §2-402, sub-§6 is enacted to read:

6.__Notwithstanding this section, the finance charge allowable on any transaction involving a credit card purchase may not exceed 29% per year on the unpaid balance of the amount financed.

SUMMARY

This bill limits the interest that may be charged on consumer credit transactions to 29%.