An Act To Protect Consumers from Credit Card and Debit Card Holds
Maine Legislature, Session 122, LD 1835
Committee: Business, Research and Economic Development
Sponsors: ASH, NUTTING, ADAMS, BURNS, CAIN, CUMMINGS, DUNN, FARRINGTON, JACKSON, LUNDEEN, PINGREE, THOMPSON, WALCOTT, BRYANT, PERRY

Legislative Document 
No. 1835 
H.P.1275 
House of Representatives. January 3.2006 
An Act To Protect Consumers from Credit Card and Debit Card 
Holds 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Clerk of the House on December 28,2005. Referred to the Committee on 
Business, Research and Economic Development pursuant to Joint Rule 308.2 and ordered 
printed pursuant to Joint Rule 401. 
Presented by Representative ASH of Belfast. 
Cosponsored by Senator NUTTING of Androscoggin and 
'77/~d: frl.1lld£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: ADAMS of Portland, BRYANT of Windham, BURNS of Berwick, CAIN of 
Orono, CUMMINGS of Portland, DUNN of Bangor, FARRINGTON of Gorham, JACKSON 
of Fort Kent, LUNDEEN of Mars Hill, PINGREE of North Haven, THOMPSON of China, 
WALCOTT of Lewiston, Senators: BRYANT of Oxford, PERRY of Penobscot. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRSA c. 202-E is enacted to read: 
CHAPTER 202-E 
HOLDS ON CREDIT CARDS OR DEBIT CARDS 
§ll50. 
Credit card or debit card holds 
1. 
Excess hold prohibited. 
A person, firm, partnership, 
association, 
corporation 
or 
limited 
liability 
company 
that 
accepts credit cards 
or debit 
cards 
for 
the transaction of 
business may not place a hold on ~ credit card or debit card for 
an amount that exceeds the actual transaction amount unless that 
person, 
firm, 
partnership, association, corporation or limited 
liability company, 
within one hour of the completion of the 
transaction, 
reduces 
the 
amount 
of 
the 
hold 
to 
the 
actual 
t_r_ansaction amount, rounded up to the nearest dollar. 
As used in 
this chapter, "hold" means a transaction conveyed to a consumer's 
~U!di t 
card or debit card issuer that decreases the amount of 
credit or funds available to that consumer. 
2. 
Violation. 
A person, 
firm, 
partnership, 
association, 
corporation 
or 
limited liability 
company 
that violates 
this 
section is subject to a fine not to exceed $250 for the first 
violation and $1, 000 for each subsequent violation. A fine may 
e 
not be assessed for a violation of this section if the person, 
.firm, partnership, association, corporation or limited liability 
company demonstrates by a preponderance Qf the evidence that the 
defendant has 
adopted procedures reasonably designed to avoid 
erxor_s and that the viplation was unintentional and resulted from 
a bona fide error. 
SUMMARY 
This bill prohibits a merchant from placing a hold on the 
credit or funds available to a consumer using a credit card or 
debit card in excess of the actual transaction amount unless the 
merchant reduces the hold to the actual transaction amount within 
one hour of the completion of the sale. 
A fine of $250 for the 
first violation and $1,000 for subsequent violations is provided. 
Page l-LR2627(l)