Source: https://www.mainelegislature.org/legis/statutes/9-A/title9-Asec5-118.html
Timestamp: 2017-12-18 22:33:50
Document Index: 103673495

Matched Legal Cases: ['§5', '§5', '§5', '§5', 'art 1', '§5', '§5', '§1', '§1', '§1', '§1', '§1', '§1', 'art 3', 'art 3', 'art 3', 'art 3', '§1']

Title 9-A, §5-118: Unlicensed loan transactions
§5-118 PDF
§5-118 MS-Word
§5-117
Part 1: LIMITATIONS ON CREDITORS' REMEDIES
§5-201
§5-118. Unlicensed loan transactions
A. "Automated clearinghouse" means the nationwide electronic funds transfer system that provides for an interbank exchange of either checks or automated debit or credit entries. [2013, c. 480, §1 (NEW).]
B. "Financial account" means a checking, savings, share, stored value, prepaid, payroll card or other depository account. [2013, c. 480, §1 (NEW).]
C. "Lender" means a person engaged in the business of making loans of money and charging, contracting for or receiving on any such loan interest, a finance charge, a discount or consideration. For purposes of this section, "lender" does not include a supervised financial organization. [2013, c. 480, §1 (NEW).]
D. "Process" or "processing" includes printing a check, draft or other form of negotiable instrument drawn on or debited against a consumer's financial account, formatting or transferring data for use in connection with the debiting of a consumer's financial account by means of such an instrument or an electronic funds transfer or arranging for such services to be provided to a lender. [2013, c. 480, §1 (NEW).]
E. "Processor" means a person who engages in processing. For purposes of this section, "processor" does not include the automated clearinghouse. [2013, c. 480, §1 (NEW).]
[ 2013, c. 480, §1 (NEW) .]
2. Certain loans prohibited. It is an unfair or deceptive act or practice in commerce, a violation of the Maine Unfair Trade Practices Act and a violation of this Title for a lender directly or through an agent to solicit or make a loan to a consumer by any means unless the lender is in compliance with Article 2, Part 3 or is otherwise exempt from the requirements of Article 2, Part 3.
3. Certain processing prohibited. It is an unfair or deceptive act or practice in commerce, a violation of the Maine Unfair Trade Practices Act and a violation of this Title for a processor, other than a supervised financial organization, to process a check, draft, other form of negotiable instrument or an electronic funds transfer from a consumer's financial account in connection with a loan solicited from or made by any means to a consumer unless the lender is in compliance with Article 2, Part 3 or is otherwise exempt from the requirements of Article 2, Part 3.
4. Certain assistance to lenders or processors prohibited. It is an unfair or deceptive act or practice in commerce, a violation of the Maine Unfair Trade Practices Act and a violation of this Title for a person or lender to provide substantial assistance to a lender or processor when the person or lender or the person's or lender's authorized agent receives notice from a regulatory, law enforcement or similar governmental authority, knows from its normal monitoring and compliance systems or consciously avoids knowing that the lender or processor is in violation of subsection 2 or 3 or is engaging in an unfair or deceptive act or practice in commerce. This subsection does not apply to a supervised financial organization.
2013, c. 480, §1 (NEW).