An Act To Cap Interest Rates for Consumer Debt
Maine Legislature, Session 130, LD 0522
Committee: Health Coverage, Insurance and Financial Services
Sponsors: BENNETT
Amends: 9-A MRSA §2

Legislative Document
No. 522
S.P. 205
In Senate, February 24, 2021
An Act To Cap Interest Rates for Consumer Debt
Received by the Secretary of the Senate on February 22, 2021.  Referred to the Committee 
on Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BENNETT of Oxford.
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: 15% 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 §2-201, 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% 15% 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Sec. 3.  9-A MRSA §2-201, sub-§10, ¶B, as repealed and replaced by PL 1983, c. 
87, §1, is amended to read:
B.  18% Fifteen percent per year.
Sec. 4.  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 is in excess of that set forth in the agreement between the consumer and 
the creditor 15% per year on the unpaid balance on the credit card.
Sec. 5.  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 15% 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. 6.  9-A MRSA §2-401, sub-§8, ¶B, as enacted by PL 1983, c. 87, §2, is 
amended to read:
B.  18%  Fifteen percent per year.
Sec. 7.  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 18% 15% per year on the unpaid balances of the amount financed, 
except for any minimum charge that may be allowed pursuant to subsection 7.
Sec. 8.  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 15% 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. 9.  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 15% per year on the entire amount financed.
SUMMARY
This bill caps interest rates on consumer loans, including credit cards, at 15%.