An Act To Cap Interest Rates and Finance Charges on Credit and Loans
Sec. 1. 9-A MRSA §2-201, sub-§2, as amended by PL 1997, c. 727, Pt. B, §3, is further amended to read:
(i) 30% per year on that part of the unpaid balances of the amount financed that is $1,000 or less;
(ii) 21% per year on that part of the unpaid balances of the amount financed that is more than $1,000 but does not exceed $2,800; and
(iii) 15% per year on that part of the unpaid balances of the amount financed that is more than $2,800; or
Sec. 2. 9-A MRSA §2-202, sub-§7, as amended by PL 2011, c. 427, Pt. A, §5, is further amended to read:
Sec. 3. 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. 4. 9-A MRSA §2-402, sub-§5, as amended by PL 2011, c. 427, Pt. A, §6, is further amended to read:
Sec. 5. 9-A MRSA §2-601, as enacted by PL 1973, c. 762, §1, is amended to read:
§ 2-601. Finance charge for other credit transactions
Except where otherwise provided by law with respect to a credit transaction other than a consumer credit transaction, the parties may not contract for the payment by the debtor of any finance charge that is in excess of 18% per year on the entire amount financed.
summary
This bill limits the maximum interest rates and finance charges charged on consumer credit and consumer loans to 18%.