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.

Statutes affected:
Bill Text LD 314, HP 214: 9-A.2