An Act To Cap Interest Rates and Finance Charges on Credit and Loans
Maine Legislature, Session 126, LD 0393
Committee: Insurance and Financial Services
Sponsors: BROOKS, GRATWICK, DAUGHTRY, DION, FARNSWORTH, PETERSON, PRIEST, STUCKEY, VEROW, WELSH
Amends: 9-A MRSA §2

Legislative Document 
No. 393 
H.P. 268 
House of Representatives, February 12, 2013 
An Act To Cap Interest Rates and Finance Charges on Credit and 
Loans 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative BROOKS of Winterport. 
Cosponsored by Senator GRATWICK of Penobscot and 
Representatives: DAUGHTRY of Brunswick, DION of Portland, FARNSWORTH of Portland, 
PETERSON of Rumford, PRIEST of Brunswick, STUCKEY of Portland, VEROW of Brewer, 
WELSH of Rockport. 
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 
further amended to read: 
2.    The finance charge, calculated according to the actuarial method, may not exceed 
the equivalent of the greater of either of the following: 18% 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 $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 
B.  18% per year on the unpaid balances of the amount financed. 
Sec. 2.  9-A MRSA §2-202, sub-§7, as amended by PL 2011, c. 427, Pt. A, §5, is 
further amended to read: 
7.    Unless otherwise provided for in Article 8-A, with respect to consumer credit 
sales made pursuant to a credit card, other than a lender credit card, a creditor may not 
impose a finance charge if it that is in excess of that set forth in the agreement between 
the consumer and the creditor 18% per year on the entire amount financed. 
Sec. 3.  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 not contract for and receive a finance charge calculated according to the 
actuarial method, not exceeding the equivalent of the following: in excess of 18% per 
year on the entire 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. 4.  9-A MRSA §2-402, sub-§5, as amended by PL 2011, c. 427, Pt. A, §6, is 
further amended to read: 
5.    Unless otherwise provided for in Article 8-A, with respect to loans made 
pursuant to a lender credit card, a creditor may not impose a finance charge if it that is in 
excess of that set forth in the agreement between the consumer and the creditor 18% per 
year.  This subsection does not apply to open-end credit plans secured by a consumer's 
principal dwelling or by a 2nd or vacation home of the consumer. 
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%.