An Act To Limit the Interest Rate on Consumer Credit Transactions
Maine Legislature, Session 121, LD 0473
Committee: Business, Research and Economic Development
Sponsors: TWOMEY, GOODWIN, ADAMS, BLISS, CANAVAN, HUTTON, LUNDEEN, O'BRIEN
Amends: Title 38, Section 1819, 9-A MRSA §2

Legislative Document 
No. 473 
H.P.365 
House of Representatives, February 4,2003 
An Act To Limit the Interest Rate on Consumer Credit 
Transactions 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
17/~ 
/J1·llldC~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative TWOMEY of Biddeford. 
Cosponsored by Representative GOODWIN of Pembroke and 
Representatives: ADAMS of Portland, BLISS of South Portland, CANAVAN of Waterville, 
HUTTON of Bowdoinham, LUNDEEN of Mars Hill, O'BRIEN of Lewiston. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 9-A MRSA §2-201, sub-§2, as amended by PL 1997, c. 
727, Pt. B, §3, is repealed. 
Sec. 2. 9-A MRSA §2-201, sub-§2-A is enacted to read: 
2-A. 
The 
finance 
charge, 
actuarial method, 
may not exceed 
balances of the amount financed. 
calculated 
according 
to 
the 
12% per year on the unpaid 
Sec. 3. 9-A MRSA §2-201. sub-§5, as enacted by PL 1973, c. 
762, §l, is repealed. 
Sec. 4. 9-A MRSA §2-201, sub-§5-A is enacted to read: 
5-A. 
Subject 
to 
classifications 
and 
differentiations 
a 
seller may reasonably establish, the seller may make the same 
finance charge on all amounts financed within a specified range. 
A finance charge so made does not violate subsection 2-A if, when 
applied to the median amount wi thin each range, it does not 
exceed the maximum permitted by subsection 2-A. 
Sec. 5. 9-A MRSA §2-201. sub-§6, as repealed and replaced by 
PL 1975, c. 298, §l, is amended to read: 
6. 
Notwithstanding 
subsection 
2-A, 
the 
seller 
may 
contract for and receive a minimum charge of not more than: 
A. 
Five dollars when the amount financed does not exceed 
$75; 
B. 
Seven dollars and fifty cents when the amount financed 
exceeds $75, but is less than $250; or 
c. 
Twenty-five dollars when the amount financed is $250 or 
more 
and 
when, 
within 
days 
from 
the 
date 
of 
the 
transaction, the agreement is assigned by the seller, other 
than a seller of motor vehicles, to an assignee having no 
corporate relationship to the seller-assignor. 
Sec. 6. 9-A MRSA §2-201. sub-§7. as amended by PL 1985, c. 
819, Pt. B, §§3 and 4, is further amended to read: 
7. 
The 
finance charge on any transaction involving the 
credit sale of goods or services used in the modernization, 
rehabili tation, 
repair, 
alteration 
or 
improvement 
of 
real 
property, in which the seller or Ris the seller's agent installs 
the goods or provides the services related to the modernization, 
rehabilitation, 
repair, alteration or 
improvement of the real 
Page l-LR0342(1) 
property, may not exceed ~g% 12% per year on the unpaid balances 
of the amount financed. 
Sec. 7. 9-A MRSA §2-201, sub-§9-A, as amended by PL 1999, c. 
699, Pt. D, §2 and affected by §30, is further amended to read: 
9-A. 
Notwithstanding 
any 
other 
provision 
of 
law, 
the 
finance charge on a consumer credit sale of a motor vehicle, as 
defined in this section, that is sold on or after January 1, 1994 
may not exceed 18% 12"'0 per year on the unpaid balance of the 
amount 
financed. 
For 
the 
purposes 
of 
this 
section, 
"motor 
vehicle" 
means 
any 
self-propelled 
vehicle 
not 
operated 
exclusively on tracks, 
except agricultural machinery 
and 
any 
other devices that do not constitute consumer goods, as defined 
in Title 11, section 9-1102, subsection (23). 
Sec. 8. 9-A MRSA §2-201, sub-§10, as amended by PL 1987, c. 
129, §32, is further amended to read: 
10. 
Notwithstanding 
any 
other 
subsection, 
the 
finance 
charge on a transaction to finance or refinance the acquisition 
of, or secured by, manufactured housing, not involving a security 
interest in real estate, 
may 
not exceed the greater of the 
following: 
A. 
A rate 2'1-0 greater than the maximum rate established by 
federal 
regulations pursuant to 
the United States 
Code, 
Title 38, Section 1819(f), Veterans Housing Act of 1970, as 
amended, 
and published from time to time in the Federal 
Register, 38 Code of Federal Regulations, Part 36; or 
B. 
~g% 12% per year. 
In the event Be 
Q specific maximum rate 
federal 
regulation 
in 
accordance 
with 
subsection sRall does not apply. 
is not established by 
this 
subsection, 
this 
Sec. 9. 9-A MRSA §2-202. sub-§3. as repealed and replaced by 
PL 1995, c. 84, §2, is repealed and the following enacted in its 
place: 
3. 
For sales made pursuant to this section: 
A. 
If the billing cycle is monthly, 
the charge may not 
exceed 1% of the amount pursuant to subsection 2; and 
B. 
If the billing cycle is not monthly, the maximum charge 
is that ~entage that bears the 
same relation to the 
applicable monthly percentage as the number of days in the 
billing cycle bears to 30. 
A billing cycle is monthly if the closing date of the cycle is 
the same date each month or does not vary bY-!DQre than 4 
day~ 
from that date. 
Sec. 10. 9·A MRSA §2.202. sub.§7. as amended by PL 1999, c. 
184, §1, is repealed. 
Sec. 11. 9·A MRSA §2.401. sub·§2. as amended by PL 1997, c. 
727, Pt. B, §10, is repealed. 
Sec. 12. 9·A MRSA §2.401, sub-§2-A is enacted to read: 
2-A. 
With respect to a consumer loan, a lender may contract 
for and receive a finance charge, calculated according to the 
actuarial method, not exceeding 12% per year on the entire amount 
of the loan. 
Sec. 13. 9·A MRSA §2-401, sub-§8. 1[B. as enacted by PL 1983, c. 
87, §2, is amended to read: 
B. 
±8% 12% per year. 
Sec. 14. 9-A MRSA §2·401. sub-§9, as enacted by PL 1985, c. 
763, Pt. A, §33, is amended to read: 
9. 
Notwithstanding any other subsection, the finance charge 
on an insurance premium loan may not exceed ±g% 12°" per year on 
the 
unpaid balances 
of 
the 
amount 
financed, 
except 
for 
any 
minimum charge that may be allowed pursuant to subsection 7. 
Sec. 15. 9·A MRSA §2-402, sub-§3. as amended by PL 1993, 
c" 
618, §1, is further amended to read: 
3. 
Except Wi~R-~€£F€€~-~~-~~~-ffiaee-~~£~~~~-~~-~-JeRaeF 
eFeei~--e-aFe as provided in subsection 4, the charge earned in 
each billing cycle may not exceed the greater of the product 
f 
the average daily balance times the number of days in the billinq 
cycle times 
TQ49~±9%-
.032876% 
or, 
if the billing cycle 
is 
monthly, 
±-.;L..,I-2% 196 of the amount pursuant to subsection 2. 
A 
billing cycle is monthly if the closing date of the cycle is the 
same date each month or does not vary by more than 4 days from 
the regular date. 
Sec. 16. 9·A MRSA §2·402. sub-§5. as enacted by PI, 1993, c. 
618, §2, is amended to read: 
5. 
With respect to loans made pursuant to a lender credi t 
card, 
a creditor may not impose a finance Charge if it is 
.. 
excess of that set forth in this section or the agreement between 
the consumer and the creditor. 
SUMMARY 
This bill limits the rate of interest that may be charged on 
consumer credit loans, such as credit cards and automobile loans, 
to 12°-0 per year.