Bill
Bill > LD314
summary
Introduced
01/30/2025
01/30/2025
In Committee
01/30/2025
01/30/2025
Crossed Over
Passed
Dead
03/27/2025
03/27/2025
Introduced Session
132nd Legislature
Bill Summary
This bill establishes the Maine Small Dollar Consumer Protection Act. It establishes the required process for supervised lenders to offer small dollar loans, which are defined as loans not exceeding $2,500 that are unsecured and paid in substantially equal installments and that mature not less than 90 days or more than 365 days after the date of the agreement, and the rights that consumers have when entering into small dollar loan agreements. It also repeals the provision that provides that a person is a lender subject to the requirements of the Maine Consumer Credit Code governing finance charges and related provisions notwithstanding the fact that the person purports to act as an agent or service provider or in another capacity for another entity that is exempt from the requirements of the Maine Consumer Credit Code governing finance charges and related provisions if certain conditions are met. It provides that the requirements of the Maine Consumer Credit Code governing finance charges and related provisions do not apply to a person doing business pursuant to any law of this State or of the United States relating to banks, national banking associations, savings banks, trust companies, savings and loan associations, credit unions or mortgage companies, including without limitation any affiliate, subsidiary or service provider of such a person, irrespective of whether or not such an affiliate, subsidiary or service provider is a bank.
AI Summary
This bill establishes the Maine Small Dollar Consumer Protection Act, which creates comprehensive regulations for small dollar loans in the state. Specifically, the bill defines small dollar loans as unsecured loans not exceeding $2,500, with repayment terms between 90 and 365 days, and requires supervised lenders to follow strict guidelines when offering these loans. Key provisions include requiring lenders to assess a consumer's ability to repay by considering factors like income, existing financial obligations, and living expenses, prohibiting multiple simultaneous small dollar loans, limiting loan renewals, and mandating consumer protections such as the right to cancel a loan within three business days, no prepayment penalties, and a guarantee that criminal proceedings cannot be used for loan collection. The bill also requires lenders to provide clear, prominent disclosures about loan terms, fees, and consumer rights, and to report loan performance to credit reporting agencies. Additionally, the bill exempts certain financial institutions like banks, credit unions, and their affiliates from these specific regulations, effectively narrowing the scope of the law to focus on small dollar lenders not already regulated under other financial service frameworks.
Committee Categories
Health and Social Services
Sponsors (7)
Anne-Marie Mastraccio (D)*,
Ed Crockett (D),
Paul Flynn (R),
Robert Foley (R),
David Haggan (R),
Josh Morris (R),
Rolf Olsen (R),
Last Action
Ought Not to Pass Pursuant To Joint Rule 310, Mar 27, 2025 (on 03/27/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=314&snum=132 |
| Fiscal Note: Text | https://legislature.maine.gov/legis/bills/bills_132nd/fiscalpdfs/FN031401.pdf |
| BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0214&item=1&snum=132 |
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