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USA Statutes : maine
Title : Title 09-A. MAINE CONSUMER CREDIT CODE
Chapter : Article VIII. TRUTH-IN-LENDING
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Title 9-A - §8-101. Short title
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 1: GENERAL PROVISIONS
§8-101. Short title
This Article may be cited as the "Maine Consumer Credit Code -- Truth-in-Lending."
[1981, c. 243, § 25 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-102. Findings and declaration of purpose
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 1: GENERAL PROVISIONS
§8-102. Findings and declaration of purpose
The Legislature finds that economic stabilization would be enhanced and the competition among the various financial institutions
and other firms engaged in the extension of consumer credit would be strengthened by the informed use of credit. The informed
use of credit results from an awareness of the cost thereof by consumers. It is the purpose of this Article to assure a meaningful
disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to
him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit
card practices.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-103. Definitions and rules of construction
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 1: GENERAL PROVISIONS
§8-103. Definitions and rules of construction
1. As used in this Article, unless the context otherwise indicates, the following words have the following meanings.
A. "Accepted credit card" means any credit card which the cardholder has requested and received or has signed or has used,
or authorized another to use, for the purpose of obtaining money, property, labor or services on credit.
[1981, c. 243, §25 (new).]
B. "Adequate notice" as used in section 8-302 means a printed notice to a cardholder which sets forth the pertinent facts clearly
and conspicuously so that a person against whom it is to operate could reasonably be expected to have noticed it and understood
its meaning. That notice may be given to a cardholder by printing the notice on any credit card, or on each periodic statement
of account, issued to the cardholder, or by any other means reasonably assuring the receipt thereof by the cardholder.
[1981, c. 243, §25 (new).]
C. "Cardholder" means any person to whom a credit card is issued or any person who has agreed with the card issuer to pay obligations
arising from the issuance of a card to another person.
[1981, c. 243, §25 (new).]
D. "Card issuer" means any person who issues a credit card, or the agent of that person with respect to that card.
[1981, c. 243, §25 (new).]
E. "Discount" as used in section 8-303 means a reduction made from the regular price. The term "discount" does not mean a surcharge.
[1981, c. 243, §25 (new).]
F. "Dwelling" means a residential structure or mobile home which contains one to 4 family housing units, or individual units
of condominiums or cooperatives.
[1981, c. 243, §25 (new).]
F-1. "High-rate, high-fee mortgage" means a consumer credit transaction, involving real property located within this State, that
is considered a "mortgage" under Section 152 of the federal Home Ownership and Equity Protection Act of 1994, 15 United States
Code, Section 1602(aa) and subject to the regulations adopted pursuant thereto by the Federal Reserve Board, including 12
Code of Federal Regulations, Section 226.32 and the official staff commentary to the regulations as each may be amended from
time to time.
[2003, c. 49, §1 (rpr).]
G. "Material disclosures" means the disclosure, as required by this Article, of the annual percentage rate, the method of determining
the finance charge and the balance upon which a finance charge will be imposed, the amount of the finance charge, the amount
to be financed, the total of payments, the number and amount of payments and the due dates or periods of payments scheduled
to repay the indebtedness.
[1981, c. 243, §25 (new).]
H. "Residential mortgage transaction" means a transaction in which a mortgage, deed of trust, purchase money security interest
arising under an installment sales contract or equivalent consensual security interest is created or retained against the
consumer's dwelling to finance the acquisition or initial construction of that dwelling.
[1981, c. 243, §25 (new).]
H-1. "Reverse mortgage transaction" means a nonrecourse transaction in which a mortgage, deed of trust or equivalent consensual
security interest is created against the consumer's principal dwelling to secure one or more advances and with respect to
which the payment of any principal, interest and shared appreciation or equity is due and payable, other than in the case
of default, only after the transfer of the dwelling, the consumer ceases to occupy the dwelling as a principal dwelling or
the death of the consumer.
[1995, c. 326, §3 (new).]
I. "Surcharge" means any means of increasing the regular price to a cardholder which is not imposed upon customers paying by
cash, check or similar means.
[1981, c. 243, §25 (new).]
I-1. "Tax refund loan," also known as "refund anticipation loan," means a transaction in which a creditor lends an amount less
than or equal to a consumer's expected tax refund.
[1991, c. 330, §1 (new).]
J. "Unauthorized use", as used in section 8-303, means a use of a credit card by a person other than the cardholder who does
not have actual, implied or apparent authority for such use and from which the cardholder receives no benefit.
[1981, c. 243, §25 (new).]
[2003, c. 49, §1 (amd).]
2. The following rules of construction are applicable for the purposes of this Article.
A. Any reference to any requirement imposed under this Article or any provision thereof includes reference to the regulations
of the administrator under this Article or the provision thereof in question.
[1981, c. 243, §25 (new).]
B. The disclosure of an amount or percentage which is greater than the amount or percentage required to be disclosed under
this Article does not in itself constitute a violation of this Article.
[1981, c. 243, §25 (new).]
[1981, c. 243, §25 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1991,
Ch. 330,
§1
(AMD).
PL 1995,
Ch. 326,
§2,3
(AMD).
PL 2003,
Ch. 49,
§1
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-104. Regulations; model forms
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 1: GENERAL PROVISIONS
§8-104. Regulations; model forms
1. The administrator shall prescribe regulations to carry out the purposes of this Article. These regulations may contain such
classifications, differentiations or other provisions, and may provide for such adjustments and exceptions for any class of
transactions, as in the judgment of the administrator are necessary or proper to effectuate the purposes of this Article,
to prevent circumvention or evasion thereof or to facilitate compliance therewith. Any regulations prescribed under authority
of this Article are subject to the procedures provided by the Maine Administrative Procedure Act, Title 5, chapter 375.
[1989, c. 502, Pt. D, §4 (amd).]
2. The administrator shall publish model disclosure forms and clauses for common transactions to facilitate compliance with
the disclosure requirements of this Article and to aid the consumer in understanding the transaction by utilizing readily
understandable language to simplify the technical nature of the disclosures. In devising those forms, the administrator shall
consider the use by creditors of data processing or similar automated equipment. Nothing in this Article may be construed
to require a creditor to use any such model form or clause prescribed by the administrator under this subsection.
A. A creditor shall be deemed to be in compliance with the disclosure provisions of this Article with respect to other than
numerical disclosures if the creditor:
(i) Uses any appropriate model form or clause as published by the administrator; or
(ii) Uses any such model form or clause and changes it by:
(a) Deleting any information which is not required by this Article; or
(b) Rearranging the format, if in making such deletion or rearranging the format, the creditor does not affect the substance,
clarity or meaningful sequence of the disclosure;
[1981, c. 243, § 25 (new).]
B. Model disclosure forms and clauses shall be adopted by the administrator after notice and an opportunity for public comment
in accordance with the Maine Administrative Procedure Act, Title 5, chapter 375.
[1989, c. 502, Pt. D, §5 (amd).]
[1989, c. 502, Pt. D, §5 (amd).]
3. Any regulation of the administrator, or any amendment or interpretation thereof, requiring any disclosure which differs
from the disclosures previously required by this Article shall have an effective date of October 1st which follows by at least
6 months the date of promulgation, or the effective date of the comparable regulatory action taken by the Federal Reserve
Board, whichever is earlier. This requirement shall not prevent the administrator from taking action to lengthen the time
period for compliance or to shorten the length of time for compliance when he makes a specific finding that such action is
necessary to comply with the findings of a court or to prevent unfair or deceptive disclosure practices. Any creditor may
comply with newly promulgated disclosure requirements prior to the effective date of the requirements.
[1981, c. 243, § 25 (new)]
4. The administrator may exempt, by rule, from all or part of this Title any class of transactions, other than transactions
involving a mortgage described in section 8-103, subsection 1, paragraph F-1, for which, in the determination of the administrator,
coverage under all or part of this Title does not provide a meaningful benefit to consumers in the form of useful information
or protection. In determining which classes of transactions to exempt in whole or in part under this subsection, the administrator
shall consider the following factors:
A. The amount of the loans and whether the disclosures, right of rescission and other provisions provide a benefit to the consumers
who are parties to such transactions, as determined by the administrator;
[1997, c. 155, Pt. C, §2 (new).]
B. The extent to which the requirements of this Title complicate, hinder or make more expensive the credit process for the
class of transactions;
[1997, c. 155, Pt. C, §2 (new).]
C. The status of the borrowers, including:
(1) Any related financial arrangements of the borrowers, as determined by the administrator;
(2) The financial sophistication of the borrowers relative to the type of transaction; and
(3) The importance to the borrowers of the credit, related supporting property and coverage under this Title, as determined
by the administrator;
[1997, c. 155, Pt. C, §2 (new).]
D. Whether a loan is secured by the principal residence of the consumer; and
[1997, c. 155, Pt. C, §2 (new).]
E. Whether the goal of consumer protection would be undermined by such an exemption.
[1997, c. 155, Pt. C, §2 (new).]
[1997, c. 155, Pt. C, §2 (new).]
5. The administrator, by rule, may exempt from the requirements of this Title certain credit transactions if:
A. The transaction involves a consumer:
(1) With an annual earned income of more than $200,000; or
(2) Having net assets in excess of $1,000,000 at the time of the transaction; and
[1997, c. 155, Pt. C, §2 (new).]
B. A waiver that is handwritten, signed, and dated by the consumer is first obtained from the consumer.
[1997, c. 155, Pt. C, §2 (new).]
The administrator, at the administrator's discretion, may adjust the annual earned income and net asset requirements of this
subsection for inflation.
[1997, c. 155, Pt. C, §2 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1989,
Ch. 502,
§D4,D5
(AMD).
PL 1997,
Ch. 155,
§C2
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-105. Determination of finance charge
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 1: GENERAL PROVISIONS
§8-105. Determination of finance charge
1. Except as otherwise provided in this section, the amount of the finance charge in connection with any consumer credit transaction
shall be determined as the sum of all charges payable directly or indirectly by the person to whom the credit is extended
and imposed directly or indirectly by the creditor as an incident to the extension of credit. The finance charge does not
include charges of a type payable in a comparable cash transaction. Examples of charges included in the finance charge include,
but are not limited to:
A. Interest, time price differential and any amount payable under a point, discount or other system of additional charges;
[1981, c. 243, §25 (new).]
B. Service or carrying charge;
[1981, c. 243, §25 (new).]
C. Loan fees, finder's fee or similar charge;
[1981, c. 243, §25 (new).]
D. Fee for an investigation or credit report;
[1995, c. 614, Pt. B, §1 (amd); §4 (aff).]
E. Premium or other charge for any guarantee or insurance protecting the creditor against the obligor's default or other credit
loss; or
[1995, c. 614, Pt. B, §1 (amd); §4 (aff).]
F. Borrower-paid mortgage broker fees, including fees paid directly to the broker or to the lender for delivery to the broker,
whether the fees are paid in cash or financed.
[1995, c. 614, Pt. B, §2 (new); §4 (aff).]
[1995, c. 614, Pt. B, §§1, 2 (amd); §4 (aff).]
1-A. The finance charge may not include fees and amounts imposed by 3rd-party closing agents, including settlement agents, attorneys
and escrow and title companies but not including fees for administering escrow accounts, if the creditor does not require
the imposition of the charges or the services provided and does not retain the charges.
[1995, c. 614, Pt. A, §6 (new).]
2. Charges or premiums for credit life, accident or health insurance or involuntary unemployment insurance written in connection
with any consumer credit transaction must be included in the finance charge unless:
A. The coverage of the debtor by the insurance is not a factor in the approval by the creditor of the extension of credit and
this fact is clearly disclosed in writing to the person applying for or obtaining the extension of credit; and
[1981, c. 243, §25 (new).]
B. In order to obtain the insurance in connection with the extension of credit, the person to whom the credit is extended must
give specific affirmative written indication of the desire to do so after written disclosure to the person of the cost of
the insurance.
[1995, c. 329, §2 (amd).]
[1995, c. 329, §2 (amd).]
3. Charges or premiums for insurance, written in connection with any consumer credit transaction, against loss of or damage
to property or against liability arising out of the ownership or use of property, shall be included in the finance charge
unless a clear and specific statement in writing is furnished by the creditor to the person to whom the credit is extended,
setting forth the cost of the insurance if obtained from or through the creditor, and stating that the person to whom the
credit is extended may choose the person through which the insurance is to be obtained.
[1987, c. 129, §72 (amd).]
4. If any of the following items is itemized and disclosed in accordance with the regulations of the administrator in connection
with any transaction, then the creditor need not include that item in the computation of the finance charge with respect to
that transaction:
A. Fees and charges prescribed by law that actually are or will be paid to public officials for determining the existence of
or for perfecting or releasing or satisfying any security related to the credit transaction;
[1995, c. 614, Pt. A, §7 (amd).]
B. The premium payable for any insurance in lieu of perfecting any security interest otherwise required by the creditor in
connection with the transaction, if the premium does not exceed the fees and charges described in paragraph A that would otherwise
be payable; or
[1995, c. 614, Pt. A, §7 (amd).]
C. Any tax levied on security instruments or on documents evidencing indebtedness if the payment of those taxes is a precondition
for recording the instrument securing the evidence of indebtedness.
[1995, c. 614, Pt. A, §8 (new).]
[1995, c. 614, Pt. A, §§7, 8 (amd).]
5. The following items, when charged in connection with any extension of credit secured by an interest in real property, shall
not be included in the computation of the finance charge with respect to that transaction:
A. Fees or premiums for title examination, title insurance or similar purposes;
[1981, c. 243, §25 (new).]
B. Fees for preparation of loan-related documents;
[1995, c. 614, Pt. A, §9 (amd).]
C. Escrows for future payments of taxes and insurance;
[1981, c. 243, §25 (new).]
D. Fees for notarizing deeds and other documents;
[1981, c. 243, §25 (new).]
E. Appraisal fees, including fees related to any pest infestation or flood hazard inspections conducted prior to closing; and
[1995, c. 614, Pt. A, §9 (amd).]
F. Credit reports.
[1981, c. 243, §25 (new).]
[1995, c. 614, Pt. A, §9 (amd).]
6. In connection with credit transactions not under an open-end credit plan that are secured by real property or a dwelling,
the disclosure of the finance charge and other disclosures affected by any finance charge are deemed accurate:
A. For purposes of this Title, if the amount disclosed as the finance charge:
(i) Does not vary from the actual finance charge by more than $100; or
(ii) Is greater than the amount required to be disclosed under this Title; or
[1995, c. 614, Pt. B, §3 (new); §4 (aff).]
B. For purposes of section 8-204:
(i) If, except as provided in subparagraph (ii), the amount disclosed as the finance charge does not vary from the actual
finance charge by more than an amount equal to 12 of 1% of the total amount of credit extended; or
(ii) In the case of a transaction, other than a high-rate, high-fee mortgage as defined in section 8-103, subsection 1, paragraph
F-1, that:
(a) Is a refinancing of the principal balance then due and any accrued and unpaid finance charges of a residential mortgage
transaction, as defined in section 8-103, subsection 1, paragraph H, or is any subsequent refinancing of such a transaction;
and
(b) Does not provide any new consolidation or new advance, if the amount disclosed as the finance charge does not vary from
the actual finance charge by more than an amount equal to 1% of the total amount of credit extended.
[1995, c. 614, Pt. B, §3 (new); §4 (aff).]
[1995, c. 614, Pt. B, §3 (new); §4 (aff).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1987,
Ch. 129,
§71,72
(AMD).
PL 1995,
Ch. 329,
§2
(AMD).
PL 1995,
Ch. 614,
§A6-9,B1-3
(AMD).
PL 1995,
Ch. 614,
§B4
(AFF).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-106-A. Number of percentage points
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 1: GENERAL PROVISIONS
§8-106-A. Number of percentage points
1. Beginning 2 years after the effective date of the regulations adopted under the federal Riegle Community Development and
Regulatory Improvement Act of 1994, Public Law No. 103-325, Section 155, 108 Stat. 2160, 2197 (1994) and no more often than
biennially after the first increase or decrease in the number of percentage points under this section, the administrator may
by rule increase or decrease the number of percentage points specified in section 8-103, subsection 1, paragraph F-1, subparagraph
(1) if the administrator determines that the increase or decrease is:
A. Consistent with the consumer protection against abusive lending provided by amendments made by the federal Riegle Community
Development and Regulatory Improvement Act of 1994, Title I, subtitle B, Public Law No. 103-325, 108 Stat. 2160, 2190 (1994);
and
[1995, c. 326, §4 (new).]
B. Warranted by the need for credit.
[1995, c. 326, §4 (new).]
[1995, c. 326, §4 (new).]
2. An increase or decrease under subsection 1 may not result in the number of percentage points referred to in subsection 1
being less than 8 percentage points or greater than 12 percentage points.
[1995, c. 326, §4 (new).]
3. In determining whether to increase or decrease the number of percentage points referred to in subsection 1, the administrator
shall consult with representatives of consumers, including low-income consumers, and lenders.
[1995, c. 326, §4 (new).]
div>
The dollar amount specified in section 8-103, subsection 1, paragraph F-1, subparagraph (2) must be adjusted annually on January
1st by the annual percentage change in the Consumer Price Index, as reported on June 1st of the year preceding the adjustment.
[1995, c. 326, §4 (new).]
div>
This section may not be construed to limit the rate of interest or the finance charge that a person may charge a consumer
for an extension of credit.
[1995, c. 326, §4 (new).]
Section History:
PL 1995,
Ch. 326,
§4
(NEW).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-106. Determination of annual percentage rate
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 1: GENERAL PROVISIONS
§8-106. Determination of annual percentage rate
1. The annual percentage rate applicable to any extension of consumer credit shall be determined, in accordance with the regulations
of the administrator:
A. In the case of any extension of credit other than under an open-end credit plan, as:
(i) That nominal annual percentage rate which will yield a sum equal to the amount of the finance charge when it is applied
to the unpaid balances of the amount financed, calculated according to the actuarial method of allocating payments made on
a debt between the amount financed and the amount of the finance charge, pursuant to which a payment is applied first to the
accumulated finance charge and the balance is applied to the unpaid amount financed; or
(ii) The rate determined by any method prescribed by the administrator as a method which materially simplifies computation
while retaining reasonable accuracy as compared with the rate determined under subparagraph (i); and
[1981, c. 243, § 25 (new).]
B. In the case of any extension of credit under an open-end credit plan, as the quotient, expressed as a percentage, of the
total finance charge for the period to which it relates divided by the amount upon which the finance charge for that period
is based, multiplied by the number of such periods in a year.
[1981, c. 243, § 25 (new).]
[1981, c. 243, § 25 (new) Eff 4-1-82.]
2. Where a creditor imposes the same finance charge for balances within a specified range, the annual percentage rate shall
be computed on the median balance within the range, except that if the administrator determines that a rate so computed would
not be meaningful, or would be materially misleading, the annual percentage rate shall be computed on such other basis as
the administrator may by regulation require.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
3. The disclosure of an annual percentage rate is accurate for the purposes of this Article if the rate disclosed is within
a tolerance not greater than 18 of one per cent more or less than the actual rate or rounded to the nearest 14 of one per
cent. The administrator may allow a greater tolerance to simplify compliance where irregular payments are involved.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
4. The administrator may authorize the use of rate tables or charts which may provide for the disclosure of annual percentage
rates which vary from the rate determined in accordance with subsection 1, paragraph A, subparagraph (i) by not more than
such tolerances as the administrator may allow. The administrator may not allow a tolerance greater than 8% of that rate except
to simplify compliance where irregular payments are involved.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
5. In the case of creditors determining the annual percentage rate in a manner other than as described in subsection 4, the
administrator may authorize other reasonable tolerances.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
6. In the case of a tax refund loan, if it is the practice of the creditor to demand repayment upon delivery of the refund,
the annual percentage rate is based on the creditor's estimate of the time the refund will be delivered.
[1991, c. 330, §2 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1991,
Ch. 330,
§2
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-107. Exemption
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 1: GENERAL PROVISIONS
§8-107. Exemption
1. The administrator may make application to the Federal Reserve Board for a determination that under the laws of this State
any class of credit transaction within this State is subject to requirements substantially similar to federal requirements
and that there is adequate provision for enforcement.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
2. This Article shall not apply to any class of credit transactions within this State which are subject to the requirements
of Title 1 of the Federal Consumer Credit Protection Act enacted by Congress, unless any such class of transactions has first
been exempted by a regulation of the Board of Governors of the Federal Reserve Board and that exemption remains in effect.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-108. Enforcement
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 1: GENERAL PROVISIONS
§8-108. Enforcement
1. This Article shall be enforced by the administrator under the provisions of Article VI.
[1981, c. 243, § 25 (new).]
2. To keep the administrator's regulations in harmony with the Federal Consumer Credit Protection Act and the regulations prescribed
from time to time pursuant to that Act by the Board of Governors of the Federal Reserve System and with the regulations of
administrators in other jurisdictions, the administrator, so far as is consistent with the purposes, policies and provisions
of this Article, shall:
A. Before adopting, amending and repealing regulations, advise and consult with administrators in other jurisdictions which
enact truth-in-lending laws; and
[1981, c. 243, § 25 (new).]
B. In adopting, amending and repealing regulations, take into consideration:
(i) The regulations so prescribed by the Board of Governors of the Federal Reserve System; and
(ii) The regulations of administrators in other jurisdictions which enact truth-in-lending laws.
[1981, c. 243, § 25 (new).]
[1981, c. 243, § 25 (new).]
3. Reimbursement. The administrator may adopt, by rule, a reimbursement program such that creditors subject to an administrative order under
section 6-108 may be ordered to make whatever adjustments are necessary to insure that any person will not be required to
pay a finance charge in excess of the finance charge actually disclosed or the dollar equivalent of the annual percentage
rate actually disclosed, whichever is lower. In determining any readjustment, the administrator shall apply, with respect
to the annual percentage rate, a tolerance allowed under section 8-106 and, with respect to the finance charge, a corresponding
numerical tolerance as generated by the tolerance allowed by section 8-106 for the annual percentage rate.
The administrator may order partial adjustment or partial payments over an extended period if the administrator determines
that a partial adjustment or making partial payments over an extended period is necessary to avoid causing the creditor to
become undercapitalized pursuant to the Federal Deposit Insurance Act.
[1997, c. 155, Pt. C, §3 (amd).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1997,
Ch. 155,
§C3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-109. Criminal liability for willful and knowing violation
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 1: GENERAL PROVISIONS
§8-109. Criminal liability for willful and knowing violation
Whoever willfully and knowingly gives false or inaccurate information or fails to provide information which he is required
to disclose under the provisions of this Article or any regulation issued thereunder, uses any chart or table authorized by
the administrator under section 8-106 in such a manner as to consistently understate the annual percentage rate determined
under section 8-106, subsection 1, paragraph A, subparagraph (i) or otherwise fails to comply with any requirement imposed
under this Article, is guilty of a Class D crime.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-110. Penalties inapplicable to governmental agencies
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 1: GENERAL PROVISIONS
§8-110. Penalties inapplicable to governmental agencies
No civil or criminal penalty provided under this Article for any violation thereof may be imposed upon the United States or
any agency thereof, or upon any state or political subdivision thereof, or any agency of any state or political subdivision.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-201. General requirement of disclosure
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-201. General requirement of disclosure
1. Subject to subsection 2, a creditor shall disclose to the person who is obligated on a consumer credit transaction the information
required under this article. A person who regularly extends credit that is payable in installments, or is subject to a finance
charge, to consumers for personal, family or household purposes, when such extensions are secured by personal property, real
property or both and such property is used or expected to be used as the consumer's principal dwelling, shall also disclose
the information required under this article. In a transaction involving more than one obligor, a creditor, except in a transaction
under section 8-204, need not disclose to more than one of such obligors if the obligor given disclosure is a primary obligor.
[1987, c. 129, §73 (amd).]
2. If a transaction involves one creditor as defined in section 1-301, subsection 17, that creditor shall make the disclosures.
If a transaction involves more than one creditor, only one creditor shall be required to make the disclosures. The administrator
shall by regulation specify which creditor shall make the disclosures.
[1981, c. 243, §25 (new).]
3. The administrator may provide by regulation that any portion of the information required to be disclosed by this article
may be given in the form of estimates when the provider of that information is not in a position to know exact information.
When a portion of the interest on any consumer credit transaction is determined on a per diem basis and collected upon the
consummation of the transaction, any disclosure with respect to that portion of interest is deemed accurate for purposes of
this Title if the disclosure is based on information actually known to the creditor at the time the disclosure documents are
being prepared for the consummation of the transaction.
[1995, c. 614, Pt. A, §10 (amd).]
4. The administrator shall determine whether tolerances for numerical disclosures other than the annual percentage rate are
necessary to facilitate compliance with this Article, and if he determines that those tolerances are necessary to facilitate
compliance, he shall by regulation permit disclosures within those tolerances. The administrator shall exercise his authority
to permit tolerances for numerical disclosures other than the annual percentage rate so that tolerances are narrow enough
to prevent tolerances from resulting in misleading disclosures or disclosures that circumvent the purposes of this Article.
[1981, c. 243, §25 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1987,
Ch. 129,
§73
(AMD).
PL 1995,
Ch. 614,
§A10
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-202. Form of disclosure; additional information; tabular format required for certain credit and charge card disclosures
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-202. Form of disclosure; additional information; tabular format required for certain credit and charge card disclosures
1. Information required by this Article shall be disclosed clearly and conspicuously, in accordance with regulations of the
administrator. The terms "annual percentage rate" and "finance charge" shall be disclosed more conspicuously than other terms,
data or information provided in connection with a transaction, except information relating to the identity of the creditor.
Except as provided in subsection 3, regulations of the administrator need not require that disclosures pursuant to this Article
be made in the order set forth in this Article and, except as otherwise provided, may permit the use of terminology different
from that employed in this Article if it conveys substantially the same meaning.
[1989, c. 472, §1 (amd).]
2. Any creditor may supply additional information or explanation with any disclosures required under this Article, except as
provided in section 8-206, subsection 2.
[1981, c. 243, § 25 (new).]
3. Tabular format shall be required for certain disclosures under section 8-205, subsection 3.
A. The information described in section 8-205, subsection 3, paragraph A, subparagraph (i); section 8-205, subsection 3, paragraph
C, subparagraph (ii), division (a), subdivision (1); section 8-205, subsection 3, paragraph D, subparagraph (i) and subparagraph
(iii), division (a), subdivision (1) shall be:
(i) Disclosed in the form and manner which the administrator shall prescribe by regulations; and
(ii) Placed in a conspicuous and prominent location on or with any written application, solicitation or other document or
paper with respect to which that disclosure is required.
[1989, c. 472, §1 (new).]
B. Tabular format shall be as follows:
(i) In the regulations prescribed under paragraph A, subparagraph (i), the administrator shall require that the disclosure
of the information shall, to the extent the administrator determines to be practicable and appropriate, be in the form of
a table which:
(a) Contains clear and concise headings for each item of the information; and
(b) Provides a clear and concise form for stating each item of information required to be disclosed under each heading.
(ii) In prescribing the form under subparagraph (i), the administrator may:
(a) List the items required to be included in the table in a different order than the order in which those items are set
forth in section 8-205, subsection 3, paragraph A, subparagraph (i) or paragraph D, subparagraph (i); and
(b) Subject to subparagraph (iii), employ terminology which is different from the terminology which is employed in section
8-205, subsection 3, if that terminology conveys substantially the same meaning.
(iii) Either the heading or the statement under the heading which relates to the time period referred to in section 8-205,
subsection 3, paragraph A, subparagraph (i), division (c) shall contain the term "grace period."
[1989, c. 472, §1 (new).]
[1989, c. 472, §1 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1989,
Ch. 472,
§1
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-203. Effect of subsequent occurrence
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-203. Effect of subsequent occurrence
If information disclosed in accordance with this Article is subsequently rendered inaccurate as the result of any act, occurrence
or agreement subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute
a violation of this Article.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-204. Right of rescission as to certain transactions
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-204. Right of rescission as to certain transactions
1. Except as otherwise provided in this section, in the case of any consumer credit transaction in which a security interest,
including any such interest arising by operation of law, is or will be retained or acquired on any property which is used
as the principal dwelling of the person to whom credit is extended, the obligor may rescind the transaction until midnight
of the 3rd business day following the consumation of the transaction or the delivery of the information and rescission forms
required under this section together with the material disclosures required under this Article, whichever is later, by notifying
the creditor, in accordance with regulations of the administrator, of his intention to do so. The creditor shall clearly and
conspicuously disclose, in accordance with regulations of the administrator, to any obligor in a transaction subject to this
section the rights of the obligor under this section. The creditor shall also provide, in accordance with regulations of the
administrator, appropriate forms for the obligor to exercise his right to rescind any transaction subject to this section.
[1981, c. 243, §25 (new).]
2. When an obligor exercises his right to rescind under subsection 1, he is not liable for any finance or other charge, and
any security interest given by the obligor, including any such interest arising by operation of law, becomes void upon such
a rescission. Within 20 days after receipt of a notice of rescission, the creditor shall return to the obligor any money or
property given as earnest money, down payment or otherwise, and shall take any action necessary or appropriate to reflect
the termination of any security interest created under the transaction. If the creditor has delivered any property to the
obligor, the obligor may retain possession of it. Upon the performance of the creditor's obligations under this section, the
obligor shall tender the property to the creditor, except that if return of the property in kind would be impracticable or
inequitable, the obligor shall tender its reasonable value. Tender shall be made at the location of the property or at the
residence of the obligor, at the option of the obligor. If the creditor does not take possession of the property within 20
days after tender by the obligor, ownership of the property vests in the obligor without obligation on his part to pay for
it. The procedures of this section shall apply except when otherwise ordered by a court.
[1981, c. 243, §25 (new).]
3. Notwithstanding any rule of evidence, written acknowledgment of receipt of any disclosures required under this Article by
a person to whom information, forms and a statement is required to be given pursuant to this section does no more than create
a rebuttable presumption of delivery.
[1981, c. 243, §25 (new).]
4. The administrator may, if he finds that such action is necessary in order to permit homeowners to meet bona fide personal
financial emergencies, prescribe regulations authorizing the modification or waiver of any rights created under this section
to the extent and under the circumstances set forth in those regulations.
[1981, c. 243, §25 (new).]
5. This section does not apply to:
A. A residential mortgage transaction as defined in section 8-103, subsection 1, paragraph H;
[1981, c. 243, §25 (new).]
B. A transaction which constitutes a refinancing or consolidation, with no new advances, of the principal balance then due
and any accrued and unpaid finance charges of an existing extension of credit by the same creditor secured by an interest
in the same property;
[1981, c. 243, §25 (new).]
C. A transaction in which an agency of a state is the creditor; or
[1981, c. 243, §25 (new).]
D. Advances under a preexisting open-end credit plan if a security interest has already been retained or acquired in conformance
with this section and such advances are in accordance with a previously established credit limit for such plan adopted in
conformance with this section.
[1987, c. 129, §74 (amd).]
[1987, c. 129, §74 (amd).]
6. An obligor's right of rescission expires 3 years after the date of consummation of the transaction or upon the sale of the
property, whichever occurs first, notwithstanding the fact that the information and forms required under this section or any
other disclosures required under this Article have not been delivered to the obligor, except that if:
A. The administrator institutes a proceeding to enforce the provisions of this section within 3 years after the date of consummation
of the transaction;
[1981, c. 243, §25 (new).]
B. The administrator finds a violation of this section; and
[1981, c. 243, §25 (new).]
C. The obligor's right to rescind is based in whole or in part on any matter involved in such proceeding, then the obligor's
right of rescission expires 3 years after the date of consummation of the transaction or upon the earlier sale of the property,
or upon the expiration of one year following the conclusion of the proceeding, or any judicial review or period for judicial
review thereof, whichever is later.
[1981, c. 243, §25 (new).]
[1981, c. 243, §25 (new).]
7. In any action in which it is determined that a creditor has violated this section, in addition to rescission, the court
may award relief under section 8-208 for violations of this Article not relating to the right to rescind.
[1981, c. 698, §20 (amd).]
8. An obligor has no rescission rights arising solely from the form of written notice used by the creditor to inform the obligor
of the rights of the obligor under this section if the creditor provided the obligor the appropriate form of written notice
published and adopted by the administrator or provided the obligor a comparable written notice of the rights of the obligor
that was properly completed by the creditor and otherwise complied with all other requirements of this section regarding notice.
[1995, c. 614, Pt. A, §11 (new).]
9. Rescission rights in foreclosure are determined in accordance with the following.
A. Notwithstanding section 8-208-A, and subject to the time period provided in subsection 6, in addition to any other right
of rescission available under this section for a transaction, after the initiation of any judicial or nonjudicial foreclosure
process on the primary dwelling of any obligor securing an extension of credit, the obligor has a right to rescind the transaction
equivalent to other rescission rights provided by this section, if:
(i) A mortgage broker fee is not included in the finance charge in accordance with the laws and regulations in effect at
the time the consumer credit transaction was consummated; or
(ii) The form of notice of rescission for the transaction is not the appropriate form of written notice published and adopted
by the administrator or a comparable written notice, and otherwise complied with all the requirements of this section regarding
notice.
[1995, c. 614, Pt. A, §11 (new).]
B. Notwithstanding section 8-105, subsection 6, and subject to the time period provided in subsection 6, for the purposes of
exercising any rescission rights after the initiation of any judicial or nonjudicial foreclosure process on the principal
dwelling of the obligor securing an extension of credit, the disclosure of the finance charge and other disclosures affected
by any finance charge are deemed accurate for purposes of this section if the amount disclosed as the finance charge does
not vary from the actual finance charge by more than $35 or is greater than the amount required to be disclosed under this
Title.
[1995, c. 614, Pt. A, §11 (new).]
C. This subsection does not affect a consumer's right of rescission in recoupment under law.
[1995, c. 614, Pt. A, §11 (new).]
D. This subsection applies to all consumer credit transactions in existence or consummated on or after September 30, 1995.
[1995, c. 614, Pt. A, §11 (new).]
[1995, c. 614, Pt. A, §11 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1981,
Ch. 698,
§20
(AMD).
PL 1983,
Ch. 720,
§22
(AMD).
PL 1987,
Ch. 129,
§74
(AMD).
PL 1995,
Ch. 614,
§A11
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-205. Open-end consumer credit plans
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-205. Open-end consumer credit plans
1. Before opening any account under an open-end consumer credit plan, the creditor shall disclose to the person to whom credit
is to be extended each of the following items, to the extent applicable:
A. The conditions under which a finance charge may be imposed, including the time period within which any credit extended may
be repaid without incurring a finance charge, except that the creditor may, at his election and without disclosure, impose
no such finance charge if payment is received after the termination of that time period, and if no time period is provided,
the creditor shall disclose that fact;
[1981, c. 243, § 25 (new).]
B. The method of determining the balance upon which the finance charge will be imposed;
[1981, c. 243, § 25 (new).]
C. The method of determining the amount of the finance charge, including any minimum or fixed amount imposed as a finance charge;
[1981, c. 243, § 25 (new).]
D. Where one or more periodic rates may be used to compute the finance charge, each rate, the range of balances to which it
is applicable and the corresponding nominal annual percentage rate determined by multiplying the periodic rate by the number
of periods in a year;
[1981, c. 243, § 25 (new).]
E. Identification of other charges which may be imposed as part of the plan, and their method of computation, in accordance
with regulations of the administrator;
[1981, c. 243, § 25 (new).]
F. In cases where the credit is or will be secured, a statement that a security interest has been or will be taken in:
(i) The property purchased as part of the credit transaction; or
(ii) Property not purchased as part of the credit transaction identified by item or type; and
[1981, c. 243, § 25 (new).]
G. A statement in a form prescribed by regulations of the administrator of the protection provided by section 8-303, subsection
6, and section 8-401 to an obligor and the creditor's responsibilities under section 8-303, subsection 6 and section 8-402.
With respect to one billing cycle per calendar year, at intervals of not less than 6 months or more than 18 months, the creditor
shall transmit the statement to each obligor to whom the creditor is required to transmit a statement pursuant to subsection
2 for the billing cycle.
[1981, c. 243, § 25 (new).]
[1981, c. 243, § 25 (new).]
2. The creditor of any account under an open-end consumer credit plan shall transmit to the obligor, for each billing cycle
at the end of which there is an outstanding balance in that account or with respect to which a finance charge is imposed,
a statement setting forth each of the following items to the extent applicable:
A. The outstanding balance in the account at the beginning of the statement period;
[1981, c. 243, § 25 (new).]
B. The amount and date of each extension of credit during the period and a brief identification, on or accompanying the statement
of each extension of credit in a form prescribed by the administrator, sufficient to enable the obligor either to identify
the transaction or to relate it to copies of sales vouchers or similar instruments previously furnished, except that a creditor's
failure to disclose such information in accordance with this paragraph shall not be deemed a failure to comply with this Article
if:
(i) The creditor maintains procedures reasonably adapted to procure and provide such information; and
(ii) The creditor responds to and treats any inquiry for clarification or documentation as a billing error and an erroneously
billed amount under Part 4;
[1981, c. 243, § 25 (new).]
C. In lieu of complying with the requirements of paragraph B, in the case of any transaction in which the creditor and seller
are the same person, and such person's open-end credit plan has fewer than 15,000 accounts, the creditor may elect to provide
only the amount and date of each extension of credit during the period and the seller's name and location where the transaction
took place if:
(i) A brief identification of the transaction has been previously furnished; and
(ii) The creditor responds to and treats any inquiry for clarification or documentation as a billing error and an erroneously
billed amount under Part 4.
[1981, c. 243, § 25 (new).]
D. The total amount credited to the account during the period;
[1981, c. 243, § 25 (new).]
E. The amount of any finance charge added to the account during the period, itemized to show the amounts, if any, due to the
application of percentage rates and the amount, if any, imposed as a minimum or fixed charge;
[1981, c. 243, § 25 (new).]
F. Where one or more periodic rates may be used to compute the finance charge, each rate, the range of balances to which it
is applicable and, unless the annual percentage rate determined under section 8-106, subsection 1, paragraph B, is required
to be disclosed pursuant to paragraph G, the corresponding nominal annual percentage rate determined by multiplying the periodic
rate by the number of periods in a year;
[1981, c. 243, § 25 (new).]
G. Where the total finance charge exceeds 50¢ for a monthly or longer billing cycle, or the pro rata part of 50¢ for a billing
cycle shorter than monthly, the total finance charge expressed as an annual percentage rate determined under section 8-106,
subsection 1, paragraph B, except that if the finance charge is the sum of 2 or more products of a rate times a portion of
the balance, the creditor may, in lieu of disclosing a single rate for the total charge, disclose each such rate expressed
as an annual percentage rate, and the part of the balance to which it is applicable;
[1981, c. 243, § 25 (new).]
H. The balance on which the finance charge was computed and a statement of how the balance was determined;
[1981, c. 243, § 25 (new).]
I. The outstanding balance in the account at the end of the period;
[1981, c. 243, § 25 (new).]
J. The date by which or the period within which payment shall be made to avoid additional finance charges, except that the
creditor may, at his election and without disclosure, impose no such additional finance charge if payment is received after
the date or the termination of that period; and
[1981, c. 243, § 25 (new).]
K. The address to be used by the creditor for the purpose of receiving billing inquiries from the obligor.
[1981, c. 243, § 25 (new).]
[1981, c. 243, § 25.]
3. Disclosure in credit and charge card applications and solicitations shall be as follows.
A. Direct mail applications and solicitations shall be governed by this paragraph.
(i) Any application to open a credit card account for any person under an open-end consumer credit plan, or a solicitation
to open such an account without requiring an application, that is mailed to consumers, shall disclose in tabular format the
following information, pursuant to subsection 5 and section 8-202, subsection 3:
(a) Annual percentage rates:
(1) Each annual percentage rate applicable to extensions of credit under the credit plan;
(2) When an extension of credit is subject to a variable rate, the fact that the rate is variable, the annual percentage
rate in effect at the time of the mailing and how the rate is determined; and
(3) When more than one rate applies, the range of balances to which each rate applies;
(b) Annual and other fees:
(1) Any annual fee, other periodic fee, or membership fee imposed for the issuance or availability of a credit card, including
any account maintenance fee or other charge imposed based on activity or inactivity for the account during the billing cycle;
(2) Any minimum finance charge imposed for each period during which any extension of credit which is subject to a finance
charge is outstanding; and
(3) Any transaction charge imposed in connection with use of the card to purchase goods or services;
(c) Grace period:
(1) Subject to section 2-202, subsection 5, the date by which, or the period within which, any credit extended under the
credit plan for purchases of goods or services must be repaid to avoid incurring a finance charge; and
(2) If the length of the grace period varies, the card issuer may disclose the range of days, the minimum number of days
or the average number of days in the grace period, if the disclosure is identified as such; and
(d) Balance calculation method:
(1) The name of the balance calculation method used in determining the balance on which the finance charge is computed if
the method used has been defined by the administrator, or a detailed explanation of the balance calculation method used if
the method has not been so defined; and
(2) In prescribing regulations to carry out this subsection, the administrator shall define and name not more than the 5
balance calculation methods determined by the administrator to be the most commonly used methods.
(ii) In addition to the information required to be disclosed under subparagraph (i), each application or solicitation to
which that subparagraph applies shall disclose clearly and conspicuously the following information, subject to subsections
5 and 6:
(a) Any cash advance fee which is any fee imposed for an extension of credit in the form of cash;
(b) Any late fee which is any fee imposed for a late payment; and
(c) Any over-the-limit fee which is any fee imposed in connection with an extension of credit in excess of the amount of
credit authorized to be extended with respect to that account.
[1989, c. 472, §2 (new).]
B. Telephone solicitations shall be governed by this paragraph.
(i) In any telephone solicitation to open a credit card account for any person under an open-end consumer credit plan, the
person making the solicitation shall orally disclose the information described in paragraph A, subparagraph (i).
(ii) Subparagraph (i) shall not apply to any telephone solicitation if:
(a) The credit card issuer:
(1) Does not impose any fee described in subsection 3, paragraph A, subparagraph (i), division (b), subdivision (1); or
(2) Does not impose any fee in connection with telephone solicitations unless the consumer signifies acceptance by using
the card;
(b) The card issuer discloses clearly and conspicuously in writing the information described in paragraph A within 30 days
after the consumer requests the card, but in no event later than the date of delivery of the card; and
(c) The card issuer discloses clearly and conspicuously that the consumer is not obligated to accept the card or account
and the consumer will not be obligated to pay any of the fees or charges disclosed unless the consumer elects to accept the
card or account by using the card.
[1989, c. 472, §2 (new).]
C. Applications and solicitations by other means shall be governed by this paragraph.
(i) Any application to open a credit card account for any person under an open-end consumer credit plan, or any solicitation
to open such an account without requiring an application, that is made available to the public or contained in catalogs, magazines,
or other publications, shall meet the disclosure requirements of subparagraph (ii), (iii) or (iv).
(ii) An application or solicitation described in subparagraph (i) meets the requirement of this subparagraph if that application
or solicitation contains:
(a) The information:
(1) Described in paragraph A, subparagraph (i) in the form required under section 8-202, subsection 3, subject to subsection
5 of this section; and
(2) Described in paragraph A, subparagraph (ii) in a clear and conspicuous form, subject to subsections 5 and 6;
(b) A statement, in a conspicuous and prominent location on the application or solicitation, that:
(1) The information is accurate as of the date the application or solicitation was printed;
(2) The information contained in the application or solicitation is subject to change after that date; and
(3) The applicant should contact the creditor for information on any change in the information contained in the application
or solicitation since it was printed;
(c) A clear and conspicuous disclosure of the date the application or solicitation was printed; and
(d) A disclosure, in a conspicuous and prominent location on the application or solicitation, of a toll-free telephone number
or a mailing address at which the applicant may contact the creditor to obtain any change in the information provided in the
application or solicitation since it was printed.
(iii) An application or solicitation described in subparagraph (i) meets the requirement of this subparagraph if that application
or solicitation:
(a) Contains a statement, in a conspicuous and prominent location on the application or solicitation, that:
(1) There are costs associated with the use of credit cards; and
(2) The applicant may contact the creditor to request disclosure of specific information of those costs by calling a toll-free
telephone number or by writing to an address, specified in the application;
(b) Contains a disclosure, in a conspicuous and prominent location on the application or solicitation, of a toll-free telephone
number and a mailing address at which the applicant may contact the creditor to obtain that information; and
(c) Does not contain any of the items described in paragraph A.
(iv) An application or solicitation meets the requirements of this subparagraph if it contains, or is accompanied by:
(a) The disclosures required by subsection 1, paragraphs A through F;
(b) The disclosures required by paragraph A, subparagraphs (i) and (ii), included clearly and conspicuously, except that
the provisions of section 8-202, subsection 3, shall not apply; and
(c) A toll-free telephone number or a mailing address at which the applicant may contact the creditor to obtain any change
in the information provided.
(v) Upon receipt of a request for any information referred to in subparagraph (ii), (iii) or (iv), the card issuer or the
agent of that issuer shall promptly disclose all other information described in paragraph A.
[1989, c. 472, §2 (new).]
D. Charge card applications and solicitation shall be governed by this paragraph.
(i) Any application or solicitation to open a charge card account shall disclose clearly and conspicuously the following
information in the form required by section 8-202, subsection 3, subject to subsection 5:
(a) Any annual fee, other periodic fee or membership fee imposed for the issuance or availability of the charge card, including
any account maintenance fee or other charge imposed based on activity or inactivity for the account during the billing cycle;
(b) Any transaction charge imposed in connection with use of the card to purchase goods or services; and
(c) A statement that charges incurred by use of the charge card are due and payable upon receipt of a periodic statement
rendered for that charge card account.
(ii) In addition to the information required to be disclosed under subparagraph (i), each written application or solicitation
to which that subparagraph applies shall disclose clearly and conspicuously the following information, subject to subsections
5 and 6, provided those fees or charges are not prohibited under section 2-501 or 2-502:
(a) Any cash advance fee which is any fee imposed for an extension of credit in the form of cash;
(b) Any late fee which is any fee imposed for a late payment; and
(c) Any over-the-limit fee which is any fee imposed in connection with an extension of credit in excess of the amount of
credit authorized to be extended with respect to that account.
(iii) Any application to open a charge card account, or any solicitation to open such an account without requiring an application,
that is made available to the public or contained in catalogs, magazines, or other publications, shall contain:
(a) The information:
(1) Described in subparagraph (i) in the form required under section 8-202, subsection 3, subject to subsection 5; and
(2) Described in subparagraph (ii) in a clear and conspicuous form, subject to subsections 5 and 6;
(b) A statement, in a conspicuous and prominent location on the application or solicitation, that:
(1) The information is accurate as of the date the application or solicitation was printed;
(2) The information contained in the application or solicitation is subject to change after that date; and
(3) The applicant should contact the creditor for information on any change in the information contained in the application
or solicitation since it was printed;
(c) A clear and conspicuous disclosure of the date the application or solicitation was printed; and
(d) A disclosure, in a conspicuous and prominent location on the application or solicitation, of a toll-free telephone number
or a mailing address at which the applicant may contact the creditor to obtain any change in the information provided in the
application or solicitation since it was printed.
(iv) If a charge card permits the card holder to receive an extension of credit under an open-end consumer credit plan, which
is not maintained by the charge card issuer, the charge card issuer may provide the information described in subparagraphs
(i) and (ii) in the form required by those subparagraphs in lieu of the information required under paragraph A, B or C with
respect to any credit extended under that plan, if the charge card issuer discloses clearly and conspicuously to the consumer
in the application or solicitation that:
(a) The charge card issuer will make an independent decision as to whether to issue the card;
(b) The charge card may arrive before the decision is made with respect to an extension of credit under an open-end consumer
credit plan; and
(c) Approval by the charge card issuer does not constitute approval by the issuer of the extension of credit.
The information required to be disclosed under paragraph A shall be provided to the charge card holder by the creditor which
maintains the open-end consumer credit plan before the first extension of credit under that plan.
(v) For the purposes of this subsection, the term "charge card" means a card, plate or other single credit device that may
be used from time to time to obtain credit which is not subject to a finance charge.
[1989, c. 472, §2 (new).]
E. The administrator may, by regulation, require the disclosure of information in addition to that required by this subsection
or subsection 4, and modify any disclosure of information required by those subsections, in any application to open a credit
card account for any person under an open-end consumer credit plan or any application to open a charge card account for any
person, or a solicitation to open any such account without requiring an application, if the administrator determines that
the action is necessary to carry out the purposes of, or prevent evasions of, this subsection.
[1989, c. 472, §2 (new).]
[1989, c. 472, §2 (new).]
4. Disclosure prior to renewal shall be as follows:
A. Except as provided in paragraph B, a card issuer that imposes any fee described in subsection 3, paragraph A, subparagraph
(i), division (b), subdivision (1) or subsection 3, paragraph D, subparagraph (i), division (a), shall transmit to the consumer
at least 30 days prior to the scheduled renewal date of the consumer's credit or charge card account a clear and conspicuous
disclosure of:
(i) The date, the month, or the billing period at the close of which the account will expire if not renewed;
(ii) The information described in subsection 3, paragraph A, subparagraph (i), or subsection 3, paragraph D, subparagraph
(i), that would apply if the account were renewed, subject to subsection 5; and
(iii) The method by which the consumer may terminate continued credit availability under the account.
[1989, c. 472, §2 (new).]
B. Special rule for certain disclosures shall be governed by this paragraph.
(i) The disclosures required by this subsection may be provided:
(a) Prior to posting a fee described in subsection 3, paragraph A, subparagraph (i), division (b), subdivision (1) or subsection
3, paragraph D, subparagraph (i), division (a), to the account; or
(b) With the first periodic billing statement that reflects the posting of the fee to the account.
(ii) Disclosures may be provided under subparagraph (i) only if:
(a) The consumer is given a 30-day period to avoid payment of the fee or to have the fee recredited to the account in any
case when the consumer does not wish to continue the availability of the credit; and
(b) The consumer is permitted to use the card during that period without incurring an obligation to pay the fee.
[1989, c. 472, §2 (new).]
C. The administrator may, by regulation, provide for fewer disclosures than are required by paragraph A in the case of an account
which is renewable for a period of less than 6 months.
[1989, c. 472, §2 (new).]
[1989, c. 472, §2 (new).]
5. Other rules for disclosures under subsections 3 and 4 shall be as follows.
A. If the amount of any fee required to be disclosed under subsection 3 or 4 is determined on the basis of a percentage of
another amount, the percentage used in making that determination and the identification of the amount against which that percentage
is applied shall be disclosed in lieu of the amount of that fee.
[1989, c. 472, §2 (new).]
B. If a credit or charge card issuer does not impose any fee required to be disclosed under any provision of subsection 3 or
4, this provision shall not apply with respect to that issuer.
[1989, c. 472, §2 (new).]
[1989, c. 472, §2 (new).]
6. If the amount of any fee required to be disclosed by a credit or charge card issuer under subsection 3, paragraph A, subparagraph
(ii); subsection 3, paragraph C, subparagraph (ii), division (a), subdivision (2); subsection 3, paragraph D, subparagraph
(ii); or subsection 3, paragraph D, subparagraph (iii), division (a), subdivision (2), varies from state to state, the card
issuer may disclose the range of those fees for purposes of subsection 3 in lieu of the amount for each applicable state,
if that disclosure includes a statement that the amount of the fee varies from state to state.
[1989, c. 472, §2 (new).]
7. Insurance in connection with certain open-end credit card plans shall be as follows:
A. Whenever a card issuer that offers any guarantee or insurance for repayment of all or part of the outstanding balance of
an open-end credit card plan proposes to change the provider of that guarantee or insurance, the card issuer shall send each
insured consumer written notice of the proposed change not less than 30 days prior to the change, including notice of any
increase in the rate or substantial decrease in coverage or service which will result from that change. The notice may be
included on or with the monthly statement provided to the consumer prior to the month in which the proposed change would take
effect.
[1989, c. 472, §2 (new).]
B. In any case in which a proposed change described in paragraph A occurs, the insured consumer shall be given the name and
address of the new guarantor or insurer and a copy of the policy or group certificate containing the basic terms and conditions,
including the premium rate to be charged.
[1989, c. 472, §2 (new).]
C. The notices required under paragraphs A and B shall each include a statement that the consumer has the option to discontinue
the insurance or guarantee.
[1989, c. 472, §2 (new).]
D. The administrator shall define in regulations what constitutes a "substantial decrease in coverage or service" for purposes
of paragraph A.
[1989, c. 472, §2 (new).]
[1989, c. 472, §2 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1989,
Ch. 472,
§2
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-206-A. High-rate, high-fee mortgages
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-206-A. High-rate, high-fee mortgages
1. In addition to other disclosures required under this article, for each high-rate, high-fee mortgage the creditor shall provide
to the consumer the following disclosures in conspicuous type size.
A. "You are not required to complete this agreement merely because you have received these disclosures or have signed a loan
application."
[1995, c. 326, §5 (new).]
B. "If you obtain this loan, the lender will have a mortgage on your home. You could lose your home and any money you have
put into it if you do not meet your obligations under the loan."
[1995, c. 326, §5 (new).]
[1995, c. 326, §5 (new).]
2. In addition to the disclosures required under subsection 1, the creditor shall disclose:
A. For a credit transaction with a fixed rate of interest, the annual percentage rate and the amount of the regular monthly
payment; or
[1995, c. 326, §5 (new).]
B. For any other credit transaction, the annual percentage rate of the loan, the amount of the regular monthly payment, a statement
that the interest rate and monthly payment may increase and the amount of the maximum monthly payment based on the maximum
interest rate allowed pursuant to the federal Competitive Equality Banking Act of 1987, Public Law No. 100-86, Section 1204,
101 Stat. 552, 662 (1987).
[1995, c. 326, §5 (new).]
[1995, c. 326, §5 (new).]
3. The disclosures required by this section must be given to the consumer at least 3 business days prior to the consummation
of the transaction.
[1995, c. 326, §5 (new).]
4. After providing the disclosures required by this section, a creditor may not change the terms of the extension of credit
if the changes make the disclosures inaccurate, unless new disclosures are provided that meet the requirements of this section.
A. A creditor may provide new disclosures by telephone under the following terms:
(1) The change is initiated by the consumer; and
(2) At the consummation of the transaction under which the credit is extended, the creditor provides to the consumer the
new disclosures in writing and the creditor and the consumer certify in writing that those new disclosures were provided by
telephone at least 3 days prior to the date of consummation of the transaction.
[1995, c. 326, §5 (new).]
[1995, c. 326, §5 (new).]
5. Upon determining that a modification of the disclosure process is necessary to permit consumers to meet bona fide personal
financial emergencies, the administrator may adopt rules authorizing the modification or waiver of the rights of disclosure
created under subsections 3 and 4 to the extent allowed under the regulations.
[1995, c. 326, §5 (new).]
6. A high-rate, high-fee mortgage may not contain terms under which a consumer must pay a prepayment penalty for paying all
or part of the principal before the date on which the principal is due.
A. For purposes of this subsection and subsection 7, any method of computing a refund of unearned scheduled interest is a prepayment
penalty if it is less favorable to the consumer than the actuarial method, as that term is defined in the federal Housing
and Community Development Act of 1992, Public Law No. 102-550, Section 933(d), 106 Stat. 3672, 3892 (1992).
[1995, c. 326, §5 (new).]
[1995, c. 326, §5 (new).]
7. Notwithstanding subsection 6, a high-rate, high-fee mortgage may contain a prepayment penalty, including terms calculating
a refund by a method that is not prohibited under the federal Housing and Community Development Act of 1992, Public Law No.
102-550, Section 933(b), 106 Stat. 3672, 3892 (1992), for the transaction in question if:
A. At the time the mortgage is consummated:
(1) The consumer is not liable for an amount of monthly indebtedness payments, including the amount of credit extended or
to be extended under the transaction, that is greater than 50% of the monthly gross income of the consumer; and
(2) The income and expenses of the consumer are verified by a financial statement signed by the consumer, by a credit report
and, in the case of employment income, by payment records or by verification from the employer of the consumer, which may
be in the form of a copy of a pay stub or other payment record supplied by the consumer;
[1995, c. 326, §5 (new).]
B. The penalty applies only to a prepayment made with amounts obtained by the consumer by means other than a refinancing by
the creditor under the mortgage or an affiliate of that creditor;
[1995, c. 326, §5 (new).]
C. The penalty does not apply after the end of the 5-year period beginning on the date the mortgage is consummated; and
[1995, c. 326, §5 (new).]
D. The penalty is not prohibited under other applicable law.
[1995, c. 326, §5 (new).]
[1995, c. 326, §5 (new).]
8. A high-rate, high-fee mortgage may not provide for an interest rate applicable after default that is higher than the interest
rate that applies before default or for default charges in excess of 5% of the amount in default. If the date of maturity
of such a mortgage is accelerated due to default and the consumer is entitled to a rebate of interest, that rebate must be
computed by a method that is not less favorable than the actuarial method, as that term is defined in the federal Housing
and Community Development Act of 1992, Public Law No. 102-550, Section 933(d) 106 Stat. 3672, 3892 (1992).
[2003, c. 49, §2 (amd).]
9. A high-rate, high-fee mortgage that has a term of less than 5 years may not include terms under which the aggregate amount
of the regular periodic payments will not fully amortize the outstanding principal balance.
[1995, c. 326, §5 (new).]
10. A high-rate, high-fee mortgage may not include terms under which the outstanding principal balance will increase at any
time over the course of the loan because the regular periodic payments do not cover the full amount of interest due.
[1995, c. 326, §5 (new).]
11. A high-rate, high-fee mortgage may not include terms under which more than 2 periodic payments required under the loan are
consolidated and paid in advance from the loan proceeds provided to the consumer.
[1995, c. 326, §5 (new).]
11-A. A creditor who makes a high-rate, high-fee mortgage shall report both the favorable and unfavorable payment history of the
consumer to a nationally recognized consumer credit reporting agency at least annually during the period the creditor holds
or services the loan.
[2003, c. 49, §3 (new).]
12. A creditor may not engage in a pattern or practice of extending credit to a consumer under a high-rate, high-fee mortgage
based on the consumer's collateral without regard to the consumer's repayment ability, including the consumer's current and
expected income, current obligations and employment.
[1995, c. 326, §5 (new).]
12-A. A creditor may not:
A. Charge any points in connection with a high-rate, high-fee mortgage if the proceeds of the high-rate, high-fee mortgage
are used to refinance an existing high-rate, high-fee mortgage owned by the creditor and the last financing was within 18
months of the current refinancing; except, however, this paragraph does not prohibit a creditor from charging points in connection
with any additional proceeds received by the consumer or paid to 3rd parties on the consumer's behalf in connection with the
refinancing. For purposes of this subsection, "additional proceeds" for a closed-end loan is the amount over and above the
outstanding principal balance of the existing high-rate, high-fee mortgage; or
[2003, c. 49, §4 (new).]
B. Charge a consumer any fees to modify, renew, extend or amend a high-rate, high-fee mortgage or defer any payment due under
a high-rate, high-fee mortgage if, after the modification, renewal, extension or amendment, the loan is still a high-rate,
high-fee mortgage or, if no longer a high-rate, high-fee mortgage, the annual percentage rate has not been reduced by a least
2 percentage points. For purposes of this paragraph, the term "fees" does not include interest that is otherwise payable
and consistent with the provisions of the loan documents. The provisions of this paragraph do not prohibit a creditor from
charging, imposing or causing to be paid, directly or indirectly, prepaid finance charges in connection with any additional
proceeds, as defined in paragraph A, received by the consumer in connection with the modification, renewal, extension or amendment,
provided the prepaid finance charges on the additional proceeds do not exceed 5% of the additional proceeds. This paragraph
does not apply if the existing high-rate, high-fee mortgage is 60 or more days delinquent and the modification, renewal, extension,
amendment or deferral is part of a work-out process.
[2003, c. 49, §4 (new).]
[2003, c. 49, §4 (new).]
13. A creditor may not make a payment to a contractor under a home improvement contract from amounts extended as credit under
a high-rate, high-fee mortgage, except:
A. In the form of an instrument that is payable to the consumer or jointly to the consumer and the contractor; or
[1995, c. 326, §5 (new).]
B. At the election of the consumer, by a 3rd-party escrow agent in accordance with terms established in a written agreement
signed by the consumer, the creditor and the contractor before the date of payment.
[1995, c. 326, §5 (new).]
[1995, c. 326, §5 (new).]
13-A. A creditor may not advertise that refinancing preexisting debt with a high-rate, high-fee mortgage will reduce a consumer's
aggregate monthly debt payment without also disclosing that the high-rate, high-fee mortgage may increase both the consumer's
aggregate number of monthly debt payments and the aggregate amount paid by the consumer over the term of the high-rate, high-fee
mortgage.
[2003, c. 49, §5 (new).]
13-B. A creditor may not recommend or encourage default or further default by a consumer on an existing loan or other debt prior
to the closing of a high-rate, high-fee mortgage that refinances all or any portion of the existing loan or debt.
[2003, c. 49, §5 (new).]
13-C. Beginning January 1, 2004, a creditor that makes a high-rate, high-fee mortgage to a consumer and offers the consumer the
option to purchase an individual or group credit life, accident, health, disability or unemployment insurance product on a
prepaid single premium basis must also offer the consumer the option of purchasing that insurance product on a monthly premium
basis.
If a consumer purchases from a lender an individual or group credit life, accident, health, disability or unemployment insurance
product, that consumer has the right to cancel the insurance product at any time and receive a refund of any unearned premiums
paid. Notice of the right to cancel must be sent by mail to the consumer by the creditor no later than 30 days after consummation.
The notice must also disclose the type of insurance product purchased, the cost of the product and the procedure for canceling
the product.
[2003, c. 49, §5 (new).]
14. A mortgage that contains a provision prohibited by this section is deemed a failure to deliver the material disclosures
required under this article for the purpose of section 8-204.
[1995, c. 326, §5 (new).]
15. The administrator may, by rule or order, exempt specific mortgage products or categories of mortgages from any of the prohibitions
specified in subsections 6 to 13 if the administrator finds that the exemption:
A. Is in the interest of the borrowing public; and
[1995, c. 326, §5 (new).]
B. Applies only to products that maintain and strengthen home ownership and equity protection.
[1995, c. 326, §5 (new).]
[1995, c. 326, §5 (new).]
16. The administrator, by regulation or order, shall prohibit acts or practices in connection with:
A. Mortgage loans that the administrator finds unfair, deceptive or designed to evade the provisions of this section; and
[1995, c. 326, §5 (new).]
B. Refinancing of mortgage loans that the administrator finds are associated with abusive lending practices or that are otherwise
not in the interest of the borrowing public.
[1995, c. 326, §5 (new).]
[1995, c. 326, §5 (new).]
16-A. A creditor that makes a high-rate, high-fee mortgage to a consumer and any assignee of that creditor have the obligation,
jointly and severally, to refund or credit the consumer for any default charges, prepayment penalties or prepaid finance charges
collected in excess of the limits set forth in this article.
[2003, c. 49, §6 (new).]
16-B. A high-rate, high-fee mortgage may not include a call provision that permits the creditor, in its sole discretion, to accelerate
the indebtedness. This subsection does not apply when repayment of the loan is accelerated by a bona fide default, pursuant
to a due-on-sale clause provision or pursuant to another provision of the loan agreement unrelated to the payment schedule,
including, but not limited to, bankruptcy or receivership.
[2003, c. 49, §6 (new).]
17. For purposes of this section, the term "affiliate" has the same meaning as in the federal Bank Holding Company Act of 1956,
12 United States Code, Section 1841, subsection (K).
[1995, c. 326, §5 (new).]
18. A political subdivision of this State is prohibited from enacting, issuing and enforcing ordinances, resolutions, rules,
regulations, orders, requests for proposals or requests for bids pertaining to the making of a high-rate, high-fee mortgage
by a person who:
A. Is subject to the jurisdiction of the Office of Consumer Credit Regulation or the Bureau of Financial Institutions, including
activities subject to this article;
[2003, c. 49, §6 (new).]
B. Is subject to the jurisdiction or regulatory supervision of the Board of Governors of the Federal Reserve System, the Office
of the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, the Federal
Deposit Insurance Corporation, the Federal Trade Commission or the United States Department of Housing and Urban Development;
[2003, c. 49, §6 (new).]
C. Is subject to the jurisdiction or regulatory supervision of a department or agency of another state; or
[2003, c. 49, §6 (new).]
D. Originates, purchases, sells, assigns, securitizes or services property interests or obligations created by financial transactions
or loans made, executed or originated by a person referred to in paragraph A, B or C or assist or facilitate such transactions.
[2003, c. 49, §6 (new).]
This subsection applies to all ordinances, resolutions, rules, regulations, orders, requests for proposals and requests for
bids pertaining to financial or lending activities, including any ordinances, resolutions, rules, regulations, orders, requests
for proposals and requests for bids disqualifying persons from doing business with a political subdivision based upon the
making of a high-rate, high-fee mortgage or imposing reporting requirements or any other obligations upon persons regarding
the making of a high-rate, high-fee mortgage.
This subsection applies retroactively to all ordinances, resolutions, rules, regulations, orders, requests for proposals and
requests for bids in existence on the effective date of this subsection.
[2003, c. 49, §6 (new).]
Section History:
PL 1995,
Ch. 326,
§5
(NEW).
PL 2003,
Ch. 49,
§2-6
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-206-B. Reverse mortgages
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-206-B. Reverse mortgages
1. In addition to the disclosures required under this article, for each reverse mortgage the creditor shall provide to the
consumer, at least 3 days prior to the consummation of the transaction, a disclosure in conspicuous type of a good faith estimate
of the projected total cost of the mortgage to the consumer expressed as a table of annual interest rates. Each annual interest
rate must be based on a projected total future credit extension balance under a projected appreciation rate for the dwelling
and a term for the mortgage. The disclosure must include:
A. Statements of the annual interest rates for at least 3 projected appreciation rates and at least 3 credit transaction periods,
as determined by the administrator, including:
(1) A short-term reverse mortgage;
(2) A term equaling the actuarial life expectancy of the consumer; and
(3) Any longer term the administrator determines appropriate; and
[1995, c. 326, §5 (new).]
B. A statement that the consumer is not obligated to complete the reverse mortgage transaction merely because the consumer
has received the disclosure required under this section or has signed an application for the reverse mortgage.
[1995, c. 326, §5 (new).]
[1995, c. 326, §5 (new).]
2. In determining the projected total cost of the mortgage to be disclosed to the consumer under subsection 1, the creditor
shall take into account:
A. Any shared appreciation or equity that the lender is, by contract, entitled to receive;
[1995, c. 326, §5 (new).]
B. All costs and charges to the consumer, including the costs of any associated annuity that the consumer elects or is required
to purchase as part of the reverse mortgage transaction;
[1995, c. 326, §5 (new).]
C. All payments to and for the benefit of the consumer including, when an associated annuity is purchased and whether or not
that purchase is required by the lender as a condition of making the reverse mortgage, the annuity payments received by the
consumer and financed from the proceeds of the loan, instead of the proceeds used to finance the annuity; and
[1995, c. 326, §5 (new).]
D. Any limitation on the liability of the consumer under reverse mortgage transactions such as nonrecourse limits and equity
conservation agreements.
[1995, c. 326, §5 (new).]
[1995, c. 326, §5 (new).]
Section History:
PL 1995,
Ch. 326,
§5
(NEW).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-206. Consumer credit not under open-end credit plans
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-206. Consumer credit not under open-end credit plans
1. For each consumer credit transaction other than under an open-end credit plan, the creditor shall disclose each of the following
items, to the extent applicable:
A. The identity of the creditor required to make disclosure;
[1981, c. 243, § 25 (new).]
B. The "amount financed," using that term, which shall be the amount of credit of which the consumer has actual use. This amount
shall be computed as follows, but the computations need not be disclosed and shall not be disclosed with the disclosures conspicuously
segregated in accordance with subsection 2:
(i) Take the principal amount of the loan or the case price less down payment and trade-in;
(ii) Add any charges which are not part of the finance charge or of the principal amount of the loan and which are financed
by the consumer, including the cost of any items excluded from the finance charge pursuant to section 8-105; and
(iii) Subtract any charges which are part of the finance charge but which will be paid by the consumer before or at the time
of the consummation of the transaction, or have been withheld from the proceeds of the credit;
[1981, c. 243, § 25 (new).]
C. In conjunction with the disclosure of the amount financed, a creditor shall provide a statement of the consumer's right
to obtain, upon a written request, a written itemization of the amount financed. The statement shall include spaces for a
"yes" and "no" indication to be initialed by the consumer to indicate whether the consumer wants a written itemization of
the amount financed. Upon receiving an affirmative indication, the creditor shall provide, at the time other disclosures are
required to be furnished, a written itemization of the amount financed. For the purposes of this paragraph, "itemization of
the amount financed" means a disclosure of the following items, to the extent applicable:
(i) The amount that is or will be paid directly to the consumer;
(ii) The amount that is or will be credited to the consumer's account to discharge obligations owed to the creditor;
(iii) Each amount that is or will be paid to 3rd persons by the creditor on the consumer's behalf, together with an identification
of or reference to the 3rd person; and
(iv) The total amount of any charges described in paragraph B, subparagraph (iii);
[1981, c. 243, § 25 (new).]
D. The "finance charge," not itemized, using that term;
[1981, c. 243, § 25 (new).]
E. The finance charge expressed as an "annual percentage rate," using that term. This is not required if the amount financed
does not exceed $75 and the finance charge does not exceed $5, or if the amount financed exceeds $75 and the finance charge
does not exceed $7.50;
[1981, c. 243, § 25 (new).]
F. The sum of the amount financed and the finance charge, which shall be termed the "total of payments;"
[1981, c. 243, § 25 (new).]
G. The number, amount and due dates or period of payments scheduled to repay the total of payments;
[1981, c. 243, § 25 (new).]
H. In a sale of property or services in which the seller is the creditor required to disclose pursuant to section 8-201, subsection
2, the "total sale price," using that term, which shall be the total of the cash price of the property or services, additional
charges and the finance charge;
[1981, c. 243, § 25 (new).]
I. Descriptive explanations of the terms "amount financed," "finance charge," "annual percentage rate," "total of payments"
and "total sale price" as specified by the administrator. The descriptive explanation of "total sale price" shall include
reference to the amount of the down payment;
[1981, c. 243, § 25 (new).]
J. Where the credit is secured, a statement that a security interest has been taken in:
(i) The property which is purchased as part of the credit transaction; or
(ii) Property not purchased as part of the credit transaction identified by item or type;
[1981, c. 243, § 25 (new).]
K. Any dollar charge or percentage amount which may be imposed by a creditor solely on account of a late payment, other than
a deferral or extension charge;
[1981, c. 243, § 25 (new).]
L. A statement indicating whether or not the consumer is entitled to a rebate of any finance charge upon refinancing or prepayment
in full pursuant to acceleration or otherwise, if the obligation involves a precomputed finance charge. A statement indicating
whether or not a penalty will be imposed in those same circumstances if the obligation involves a finance charge computed
from time to time by application of a rate to the unpaid principal balance;
[1981, c. 243, § 25 (new).]
M. A statement that the consumer should refer to the appropriate contract document for any information such document provides
about nonpayment, default, the right to accelerate the maturity of the debt and prepayment rebates and penalties;
[1997, c. 155, Pt. C, §4 (amd).]
N. In any residential mortgage transaction, a statement indicating whether a subsequent purchaser or assignee of the consumer
may assume the debt obligation on its original terms and conditions; and
[1997, c. 155, Pt. C, §4 (amd).]
O. In the case of a variable interest rate residential mortgage transaction, in disclosures provided at application as prescribed
by the administrator for a variable rate transaction secured by the consumer's principal dwelling, at the option of the creditor,
a statement that the periodic payments may increase or decrease substantially, and the maximum interest rate and payment for
a $10,000 loan originated at a recent interest rate, as determined by the administrator, assuming the maximum periodic increases
in rates and payments under the program, or a historical example illustrating the effects of interest rates changes implemented
according to the loan program.
[1997, c. 155, Pt. C, §5 (new).]
[1997, c. 155, Pt. C, §§4, 5 (amd).]
2. Except as otherwise provided in this Article, the disclosures required under subsection 1 shall be made before the credit
is extended. Except for the identity of the creditor, all disclosures required under subsection 1 and any disclosure provided
for in section 8-105, subsection 2, 3 or 4 shall be conspicuously segregated from all other terms, data or information provided
in connection with a transaction, including any computations or itemization.
[1981, c. 243, § 25 (new).]
3. In the case of a residential mortgage transaction, which is also subject to the Real Estate Settlement Procedures Act, United
States Code, Title 12, Section 2601, et seq., good faith estimates of the disclosures required under subsection 1 shall be
made in accordance with regulations of the administrator under section 8-201, subsection 3, before the credit is extended,
or shall be delivered or placed in the mail not later than 3 business days after the creditor receives the consumer's written
application, whichever is earlier. If the disclosure statement furnished within 3 days of the written application contains
an annual percentage rate which is subsequently rendered inaccurate within the meaning of section 8-106, subsection 3, the
creditor shall furnish another statement at the time of settlement or consummation.
[1981, c. 243, § 25 (new).]
4. If a creditor receives a purchase order by mail or telephone without personal solicitation, and the cash price and the total
sale price and the terms of financing, including the annual percentage rate, are set forth in the creditor's catalog or other
printed material distributed to the public, then the disclosures required under subsection 1 may be made at any time not later
than the date the first payment is due.
[1981, c. 243, § 25 (new).]
5. If a creditor receives a request for a loan by mail or telephone without personal solicitation and the terms of financing,
including the annual percentage rate for representative amounts of credit, are set forth in the creditor's printed material
distributed to the public or in the contract of loan or other printed material delivered to the obligor then the disclosures
required under subsection 1 may be made at any time not later than the date the first payment is due.
[1981, c. 243, § 25 (new).]
6. If a consumer credit sale is one of a series of consumer credit sales transactions made pursuant to an agreement providing
for the addition of the total sale price of that sale to an existing outstanding balance, and the person to whom the credit
is extended has approved in writing both the annual percentage rate or rates and the method of computing the finance charge
or charges, and the creditor retains no security interest in any property as to which he has received payments aggregating
the amount of the sales price including any finance charges attributable therto, then the disclosure required under subsection
1 for the particular sale may be made at any time not later than the date the first payment for that sale is due. For the
purposes of this subsection, in the case of items purchased on different dates, the first purchased shall be deemed first
paid for, and in the case of items purchased on the same date, the lowest priced shall be deemed first paid for.
[1981, c. 243, § 25 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1997,
Ch. 155,
§C4
(AMD).
PL 1997,
Ch. 155,
§C5
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-207. Consumer lease disclosures
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-207. Consumer lease disclosures
Each creditor shall give a consumer prior to the consummation of the lease a dated written statement on which the creditor
and consumer are identified setting out accurately and in a clear and conspicuous manner, as prescribed by rules adopted by
the administrator, the following information with respect to that lease, as applicable:
[1987, c. 321, § 1 (amd).]
1. A brief description or identification of the leased property, including its capitalized cost;
[1987, c. 321, § 2 (amd).]
2. The amount of any payment by the consumer required at the inception of the lease;
[1981, c. 243, § 25 (new).]
3. The amount paid or payable by the consumer for official fees, registration, certificate of title or license fees or taxes;
[1981, c. 243, § 25 (new).]
4. The amount of other charges payable by the consumer not included in the periodic payments, a description of the charges
and that the consumer shall be liable for the differential, if any, between the anticipated fair market value of the leased
property and its appraised actual value at the termination of the lease, if the consumer has such liability;
[1981, c. 243, § 25 (new).]
5. A statement of the amount or method of determining the amount of any liabilities the lease imposes upon the consumer at
the end of the term and whether or not the consumer has the option to purchase the leased property and at what price and time;
[1981, c. 243, § 25 (new).]
6. A statement identifying all express warranties and guarantees made by the manufacturer or creditor with respect to the leased
property, and identifying the party responsible for maintaining or servicing the leased property together with a description
of the responsibility;
[1981, c. 243, § 25 (new).]
7. A brief description of insurance provided or paid for by the creditor or required of the consumer, including the types and
amounts of the coverages and costs;
[1981, c. 243, § 25 (new).]
8. A description of any security interest held or to be retained by the creditor in connection with the lease and a clear identification
of the property to which the security interest relates, subject to the restriction of section 3-301;
[1981, c. 243, § 25 (new).]
9. The number, amount and due dates or periods of payments under the lease and the total amount of such periodic payments;
[1981, c. 243, § 25 (new).]
10. Where the lease provides that the consumer shall be liable for the anticipated fair market value of the property on expiration
of the lease, the fair market value of the property at the inception of the lease, the aggregate cost of the lease on expiration
and the differential between them; and
[1981, c. 243, § 25 (new).]
11. A statement of the conditions under which the consumer or creditor may terminate the lease prior to the end of the term
and the amount or method of determining any penalty or other charge for delinquency, default, late payments or early termination,
subject to the restrictions of Article II.
[1981, c. 243, § 25 (new).]
div>
The disclosures required under this section shall be made in accordance with rules adopted by the administrator and shall
be signed by the consumer. The administrator may provide by regulation that any portion of the information required to be
disclosed under this section may be given in the form of estimates where the creditor is not in a position to know exact information.
[1987, c. 321, § 3 (amd).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1987,
Ch. 321,
§1-3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-208-A. Certain limitations on liability
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-208-A. Certain limitations on liability
1. For any closed-end consumer credit transaction subject to this Title that is secured by real property or a dwelling and
that is consummated before September 30, 1995, a creditor or any assignee of a creditor does not have civil, administrative
or criminal liability under this Title for, and a consumer does not have extended rescission rights under section 8-204, subsection
6 with respect to:
A. The creditor's treatment, for disclosure purposes, of:
(i) Taxes described in section 8-105, subsection 4, paragraph C;
(ii) Fees described in section 8-105, subsection 5, paragraphs B and E;
(iii) Fees and amounts described in section 8-105, subsection 1-A; or
(iv) Borrower-paid mortgage broker fees referred to in section 8-105, subsection 1, paragraph F;
[1995, c. 614, Pt. A, §13 (new).]
B. The form of written notice used by the creditor to inform the obligor of the rights of the obligor under section 8-204 if
the creditor provided the obligor with a properly dated form of written notice published and adopted by the administrator
or a comparable written notice and otherwise complied with all the requirements of this section regarding notice; or
[1995, c. 614, Pt. A, §13 (new).]
C. Any disclosure relating to the finance charge imposed with respect to the transaction if the amount or percentage actually
disclosed:
(i) Is deemed accurate for purposes of this Title and if the amount disclosed as the finance charge does not vary from the
actual finance charge by more than $200;
(ii) May, under section 8-105, subsection 6, paragraph B, be deemed accurate for purposes of section 8-204; or
(iii) Is greater than the amount or percentage required to be disclosed under this Title.
[1995, c. 614, Pt. A, §13 (new).]
[1997, c. 155, Pt. C, §6 (amd).]
2. Subsection 1 does not apply to:
p align="center">A. Any individual action or counterclaim brought under this Title that was filed before June 1, 1995;
[1995, c. 614, Pt. A, §13 (new).]p align="center">B. Any class action brought under this Title for which a final order certifying a class was entered before January 1, 1995;
[1995, c. 614, Pt. A, §13 (new).]p align="center">C. The named individual plaintiffs in any class action brought under this Title that was filed before June 1, 1995; or
[1995, c. 614, Pt. A, §13 (new).]p align="center">D. Any consumer credit transaction for which a timely notice of rescission was sent to the creditor before June 1, 1995.
[1995, c. 614, Pt. A, §13 (new).]
[1995, c. 614, Pt. A, §13 (new).]
Section History:
PL 1995,
Ch. 614,
§A13
(NEW).
PL 1997,
Ch. 155,
§C6
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-208. Civil liability
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-208. Civil liability
1. Except as otherwise provided in this section, any creditor who fails to comply with any requirement imposed under this Article,
including any requirement under section 8-204, with respect to any person is liable to that person in an amount equal to the
sum of:
A. Any actual damage sustained by such person as a result of the failure;
[1983, c. 720, §23 (amd).]
B. In an individual action:
(i) Twice the amount of any finance charge in connection with the transaction; or
(ii) In the case of a consumer lease, 25% of the total amount of monthly payments under the lease.
Liability under this paragraph may not be less than $100 nor greater than $1,000; except that in the case of a credit transaction
not under an open-end credit plan that is secured by real property or a dwelling, liability under this paragraph may not be
less than $200 nor greater than $2,000;
[RR 1995, c. 2, §18 (cor).]
C. In the case of any successful action to enforce the foregoing liability or in any action in which a person is determined
to have a right of recision under section 8-204, the costs of the action, together with a reasonable attorney's fee as determined
by the court; and
[1981, c. 698, §21 (amd).]
D. In the case of a class action, such amount as the court may allow, except that as to each member of the class no minimum
recovery is applicable, and the total recovery for any class action or series of class actions arising out of the same failure
to comply by the same creditor shall not be more than the lesser of $500,000 or 1% of the net worth of the creditor. In determining
the amount of award in any class action, the court shall consider, among other relevant factors, the amount of any actual
damages awarded, the frequency and persistence of failures of compliance by the creditor, the resources of the creditor, the
number of persons adversely affected and the extent to which the creditor's failure of compliance was intentional.
[1981, c. 698, §22 (new).]
[RR 1995, c. 2, §18 (cor).]
2. A creditor or assignee has no liability under this section, section 8-108 or section 8-109 for any failure to comply with
any requirement imposed under this Article, if within 60 days after discovering an error, whether pursuant to a final written
examination report or notice issued under section 8-108, subsection 3, or through the creditor's or assignee's own procedures
and prior to the institution of an action under this section or the receipt of written notice of the error from the obligor,
the creditor or assignee notifies the person concerned of the error and makes whatever adjustments in the appropriate account
are necessary to assure that the person will not be required to pay an amount in excess of the charge actually disclosed,
or the dollar equivalent of the annual percentage rate actually disclosed, whichever is lower.
[1981, c. 243, §25 (new).]
3. A creditor or assignee may not be held liable in any action brought under this section or section 8-204 for a violation
of this Article if the creditor or assignee shows by a perponderance of evidence that the violation was not intentional and
resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
Examples of a bona fide error include, but are not limited to, clerical, calculation, computer malfunction and programming
and printing errors, except that an error of legal judgment with respect to a person's obligations under this Article is not
a bona fide error.
[1981, c. 243, §25 (new).]
4. When there are multiple obligors in a consumer credit transaction, there shall be not more than one recovery of damages
under subsection 1, paragraph B, for a violation of this Article.
[1981, c. 243, §25 (new).]
5. Any action under this section may be brought in any court of competent jurisdiction, within one year from the date of the
occurrence of the violation. This subsection does not bar a person from asserting a violation of this Article in an action
to collect the debt which was brought more than one year from the date of the occurrence of the violation as a matter of defense
by recoupment or set-off in such action.
[1981, c. 243, §25 (new).]
6. The multiple failure to disclose to any person any information required under this Article to be disclosed in connection
with a single account under an open-end consumer credit plan, other single consumer credit sale, consumer loan, consumer lease
or other extension of consumer credit shall entitle the person to a single recovery under this section, but continued failure
to disclose after a recovery has been granted shall give rise to rights to additional recoveries. This subsection does not
bar any remedy permitted by section 8-204.
[1981, c. 243, §25 (new).]
7. A person may not take any action to offset any amount for which a creditor or assignee is potentially liable to such person
under subsection 1, paragraph B, against any amount owed by that person, unless the amount of the creditor's or assignee's
liability under this Article has been determined by judgment of a court of competent jurisdiction in an action of which that
person was a party. This subsection does not bar a consumer then in default on the obligation from asserting a violation
of this Article as an original action, or as a defense or counterclaim to an action to collect amounts owed by the consumer
brought by a person liable under this Article.
[1981, c. 243, §25 (new).]
8. With respect to disclosure under sections 8-205 and 8-206, a creditor is liable under subsection 1, paragraphs B or D, only
for the failure to comply with certain disclosure requirements.
A. In connection with the disclosures of section 8-205, subsections 1 and 2 of a creditor's only liability under subsection
1, paragraphs B or D, is for failing to comply with the requirements of section 8-204, section 8-205, subsection 1 or subsection
2, paragraph D, E, F, G, H, I or J.
[1989, c. 472, §3 (amd).]
B. In connection with the disclosures of section 8-206, a creditor's only liability determined under subsection 1, paragraph
B or D is for failing to comply with the requirements of section 8-204 or section 8-206, subsection 1, paragraph B, D, E,
F, G or J.
[1995, c. 614, Pt. C, §1 (amd).]
C. With respect to any failure to make disclosures required by this Article, liability shall be imposed only upon the creditor
required to make disclosures, except as provided in section 8-209.
[1981, c. 243, §25 (new).]
D.
[1981, c. 698, §23 (rp).]
[1995, c. 614, Pt. C, §1 (amd).]
9. In connection with the disclosures referred to in section 8-205, subsections 3 or 4, a card issuer shall have a liability
under this section only to a card holder who uses a credit or charge card or pays a fee described in section 8-205, subsection
3, paragraph A, subparagraph (i), division (b), subdivision (1) or section 8-205, subsection 3, paragraph D, subparagraph
(i), division (a).
[1989, c. 472, §4 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1981,
Ch. 698,
§21-23
(AMD).
PL 1983,
Ch. 720,
§23
(AMD).
PL 1989,
Ch. 472,
§3,4
(AMD).
PL 1995,
Ch. 614,
§A12,C1
(AMD).
RR 1995,
Ch. 2,
§18
(COR).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-209. Liability of assignees
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 2: DISCLOSURE REQUIREMENTS
§8-209. Liability of assignees
1. Except as otherwise specifically provided in this Article, any civil action for a violation of this Article or proceeding
under section 8-108 which may be brought against a creditor may be maintained against any assignee of such creditor only if
the violation for which such action or proceeding is brought is apparent on the face of the disclosure statement, except where
the assignment was involuntary. For the purpose of this section, a violation apparent on the face of the disclosure statement
includes, but is not limited to:
A. A disclosure which can be determined to be incomplete or inaccurate from the face of the disclosure statement or other documents
assigned; or
[1981, c. 243, §25 (new).]
B. A disclosure which does not use the terms required to be used by this Article.
[1981, c. 243, §25 (new).]
[1987, c. 129, §75 (amd).]
2. Except as provided in section 8-204, subsection 3, in any action or proceeding by or against any subsequent assignee of
the original creditor without knowledge to the contrary by the assignee when he acquires the obligation, written acknowledgement
of receipt by a person to whom a statement is required to be given pursuant to this Article is conclusive proof of the delivery
thereof and, except as provided in subsection 1, of compliance with this Article. This section does not affect the rights
of the obligor in any action against the original creditor.
[1981, c. 243, §25 (new).]
3. Any consumer who has the right to rescind a transaction under section 8-204 may rescind the transaction as against any assignee
of the obligation.
[1981, c. 243, §25 (new).]
4. The rights upon assignment of certain mortgages are determined in accordance with the following.
A. Any person who purchases or is otherwise assigned a high-rate, high-fee mortgage, as defined in section 8-103, subsection
1, paragraph F-1, is subject to all claims and defenses with respect to that mortgage that the consumer may assert against
the creditor of the mortgage, unless the purchaser or assignee demonstrates by a preponderance of the evidence that a reasonable
person exercising ordinary due diligence could not determine, based on the documentation required by this Title, the itemization
of the amount financed and other disclosure of disbursements, that the mortgage was a high-rate, high-fee mortgage. This
paragraph does not affect rights of a consumer under subsection 1, 2 or 3 or any other provision of this Title.
[1995, c. 614, Pt. A, §14 (new).]
B. Notwithstanding any other provision of law, relief provided as a result of any action made permissible by paragraph A may
not exceed:
(i) With respect to actions based upon a violation of this Title, the amount specified in section 8-208; and
(ii) With respect to all other causes of action, the sum of:
(a) The amount of all remaining indebtedness; and
(b) The total amount paid by the consumer in connection with the transaction.
[1995, c. 614, Pt. A, §14 (new).]
C. The amount of damages that may be awarded under paragraph B, subparagraph (ii) must be reduced by the amount of any damages
awarded under paragraph B, subparagraph (i).
[1995, c. 614, Pt. A, §14 (new).]
D. Any person who sells or otherwise assigns a high-rate, high-fee mortgage, as defined in section 8-103, subsection 1, paragraph
F-1, shall include a prominent notice of the potential liability under this subsection as determined by the administrator.
[1995, c. 614, Pt. A, §14 (new).]
[1995, c. 614, Pt. A, §14 (new).]
5. The liability of assignees for consumer credit transactions secured by real property is determined in accordance with the
following.
A. Except as otherwise provided in this Title, any civil action against a creditor for a violation of this Title and any proceeding
under section 8-108 against a creditor, with respect to a consumer credit transaction secured by real property, may be maintained
against any assignee of that creditor only if:
(i) The violation for which the action or proceeding is brought is apparent on the face of the disclosure statement provided
in connection with the transaction pursuant to this Title; and
(ii) The assignment to the assignee was voluntary.
[1995, c. 614, Pt. A, §14 (new).]
B. For the purposes of this subsection, a violation is apparent on the face of the disclosure statement if:
(i) The disclosure can be determined to be incomplete or inaccurate by a comparison among the disclosure statement, any itemization
of the amount financed, the note or any other disclosure of disbursement; or
(ii) The disclosure statement does not use the terms or format required under this Title.
[1995, c. 614, Pt. A, §14 (new).]
[1995, c. 614, Pt. A, §14 (new).]
6. The treatment of a servicer of a consumer obligation from a consumer credit transaction is determined in accordance with
the following.
A. A servicer of a consumer obligation arising from a consumer credit transaction may not be treated as an assignee of such
an obligation for purposes of this section unless the servicer is or was the owner of the obligation.
[1995, c. 614, Pt. A, §14 (new).]
B. A servicer of a consumer obligation arising from a consumer credit transaction may not be treated as the owner of the obligation
for purposes of this section on the basis of an assignment of the obligation from the creditor or another assignee to the
servicer solely for the administrative convenience of the servicer in servicing the obligation. Upon written request by the
obligor, the servicer shall provide the obligor, to the best knowledge of the servicer, with the name, address and telephone
number of the owner of the obligation or the master servicer of the obligation.
[1995, c. 614, Pt. A, §14 (new).]
C. For purposes of this subsection, the term "servicer" has the same meaning as in the federal Real Estate Settlement Procedures
Act of 1974, Section 6(i)(2).
[1995, c. 614, Pt. A, §14 (new).]
D. This subsection applies to all consumer credit transactions in existence or consummated on or after September 30, 1995.
[1995, c. 614, Pt. A, §14 (new).]
[1995, c. 614, Pt. A, §14 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1987,
Ch. 129,
§75
(AMD).
PL 1995,
Ch. 614,
§A14
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-301. Issuance of credit cards
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 3: CREDIT CARD RESTRICTIONS
§8-301. Issuance of credit cards
No credit card may be issued except in response to a request or application therefor. This prohibition does not apply to the
issuance of a credit card in renewal of, or in substitution for, an accepted credit card.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-302. Liability of holder of credit card
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 3: CREDIT CARD RESTRICTIONS
§8-302. Liability of holder of credit card
1. Except as provided in this section, a cardholder incurs no liability from the unauthorized use of a credit card. A cardholder
shall be liable for the unauthorized use of a credit card only if:
A. The card is an accepted credit card;
[1981, c. 243, § 25 (new).]
B. The liability is not in excess of $50;
[1981, c. 243, § 25 (new).]
C. The card issuer gives adequate notice to the cardholder of the potential liability;
[1981, c. 243, § 25 (new).]
D. The card issuer has provided the cardholder with a description of a means by which the card issuer may be notified of loss
or theft of the card, which description may be provided on the face or reverse side of the statement required by section 8-205,
subsection 2, or on a separate notice accompanying the statement;
[1981, c. 243, § 25 (new).]
E. The unauthorized use occurs before the card issuer has been notified that an unauthorized use of the credit card has occurred
or may occur as the result of loss, theft or otherwise; and
[1981, c. 243, § 25 (new).]
F. The card issuer has provided a method whereby the user of the card can be identified as the person authorized to use it.
[1981, c. 243, § 25 (new).]
[1981, c. 243, § 25 (new) Eff 4-1-82.]
2. For purposes of this section, a card issuer has been notified when such steps as may be reasonably required in the ordinary
course of business to provide the card issuer with the pertinent information have been taken, whether or not any particular
officer, employee or agent of the card issuer does in fact receive such information.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
3. In any action by a card issuer to enforce liability for the use of a credit card, the burden of proof is upon the card issuer
to show that the use was authorized or, if the use was unauthorized then the burden of proof is upon the card issuer to show
that the conditions of liability for the unauthorized use of a credit card, as set forth in subsection 1, have been met.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
4. Nothing in this section imposes liability upon a cardholder for the unauthorized use of a credit card in excess of his liability
for such use under other applicable law or under any agreement with the card issuer.
[1981, c. 243, § 25 (new) Eff 4-1-82.]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-303. Credit card restrictions
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 3: CREDIT CARD RESTRICTIONS
§8-303. Credit card restrictions
1. With respect to a credit card which may be used for extensions of credit in sales transactions in which the seller is a
person other than the card issuer, the card issuer may not, by contract or otherwise, prohibit any such seller from offering
a discount to a cardholder to induce the cardholder to pay by cash, check or similar means rather than use a credit card.
[1981, c. 243, §25 (new).]
2. No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment
by cash, check or similar means.
[1981, c. 243, §25 (new).]
3. With respect to any sales transaction, any discount offered by the seller for the purpose of inducing payment by cash, check
or other means not involving the use of a credit card does not constitute a finance charge as determined under section 8-105,
if that discount is offered to all prospective buyers and its availability is disclosed to all prospective buyers clearly
and conspicuously.
[1981, c. 243, §25 (new).]
4. Notwithstanding any agreement to the contrary, a card issuer may not require a seller, as a condition to participating in
a credit card plan, to open an account with or procure any other service from the card issuer or its subsidiary or agent.
[1981, c. 243, §25 (new).]
5. A card issuer may not take any action to offset a cardholder's indebtedness arising in connection with a consumer credit
transaction under the relevant credit card plan against funds of the cardholder held on deposit with the card issuer unless:
A. This action was previously authorized in writing by the cardholder in accordance with a credit plan whereby the cardholder
agrees periodically to pay debts incurred in his open-end credit account by permitting the card issuer periodically to deduct
all or a portion of such debt from the cardholder's deposit account; and
[1981, c. 243, §25 (new).]
B. This action with respect to any outstanding disputed amount may not be taken by the card issuer upon request of the cardholder.
[1995, c. 614, Pt. A, §15 (amd).]
[1995, c. 614, Pt. A, §15 (amd).]
6. Rights of credit card customers are as follows.
A. Subject to the limitation contained in paragraph B, a card issuer who has issued a credit card to a cardholder pursuant
to an open-end consumer credit plan is subject to all claims, other than tort claims, and defenses arising out of any transaction
in which the credit card is used as a method of payment or extension of credit if:
(i) The obligor has made a good faith attempt to obtain satisfactory resolution of a disagreement or problem relative to
the transaction from the person honoring the credit card;
(ii) The amount of the initial transaction exceeds $50; and
(iii) The place where the initial transaction occurred was in the same state as the mailing address previously provided by
the cardholder or was within 100 miles from such address.
[1981, c. 243, §25 (new).]
B. The limitations set forth in paragraph A, subparagraphs (ii) and (iii), with respect to an obligor's right to assert claims
and defenses against a card issuer are not applicable to any transaction in which the person honoring the credit card:
(i) Is the same person as the card issuer;
(ii) Is controlled by the card issuer;
(iii) Is under direct or indirect common control with the card issuer;
(iv) Is a franchised dealer in the card issuer's products or services; or
(v) Has obtained the order for such transaction through a mail solicitation made by or participated in by the card issuer
in which the cardholder is solicited to enter into the transaction by using the credit card issued by the card issuer.
[1981, c. 243, §25 (new).]
C. The amount of claims or defenses asserted by the cardholder may not exceed the amount of credit outstanding with respect
to the transaction at the time the cardholder first notifies the card issuer or the person honoring the credit card of that
claim or defense. For the purpose of determining the amount of credit outstanding in the preceding sentence, payments and
credits to the cardholder's account are deemed to have been applied, in the order indicated, to the payment of:
(i) Late charges in the order of their entry to the account;
(ii) Finance charges in order of their entry to the account; and
(iii) Debits to the account other than those set forth above, in the order in which each debit entry to the account was made.
[1981, c. 243, §25 (new).]
[1981, c. 243, §25 (new).]
7. With respect to an open-end credit plan involving a credit card offered in connection with a seller located in this State
using cards displaying the name of the seller:
A. The terms of the credit card contract must comply with the laws that would apply if the seller were the creditor; or
[1991, c. 212 (new).]
B. The name and state of the financial institution underwriting the debt must appear on the credit card.
[1997, c. 660, Pt. D, §1 (amd).]
This subsection applies to any new credit card programs implemented after November 1, 1991 and takes effect on December 31,
1992 for all other credit card accounts and programs. A violation of this section constitutes a violation of Title 5, chapter
10, Unfair Trade Practices Act.
[1997, c. 660, Pt. D, §1 (amd).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
PL 1991,
Ch. 212,
§
(AMD).
PL 1991,
Ch. 755,
§1
(AMD).
PL 1995,
Ch. 614,
§A15
(AMD).
PL 1997,
Ch. 660,
§D1
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-304. Disclosure of lists of the names, addresses and account numbers of credit card holders
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 3: CREDIT CARD RESTRICTIONS
§8-304. Disclosure of lists of the names, addresses and account numbers of credit card holders
1. Except as provided in subsection 2, it is unlawful for a person, business, corporation, partnership, agency, financial institution,
credit card registration service or other entity to rent, sell, exchange or otherwise disclose or make available to another
person or entity a list containing the names, addresses and account numbers of credit card holders without the express, written
permission of the credit card holders.
[1993, c. 86, §1 (new).]
2. The following disclosures of lists containing the names, addresses and account numbers of credit card holders are not prohibited:
A. Disclosure to or from a consumer reporting agency, as defined in Title 10, section 1312, subsection 4, provided the transfer
is for purposes of compliance with and in a manner consistent with the terms of the Fair Credit Reporting Act;
[1993, c. 86, §1 (new).]
B. Disclosure between a parent corporation and a subsidiary or affiliate of that corporation or between subsidiaries or affiliates
of a parent corporation;
[1993, c. 86, §1 (new).]
C. Disclosure in connection with the sale or pledge, or negotiation of the sale or pledge, of any portion of a business or
the assets of a business, provided that the party to whom disclosure is made shall maintain the confidentiality of the information
disclosed;
[1993, c. 86, §1 (new).]
D. Disclosure in connection with the authorization, processing, billing, collection, charge-back, fraud prevention or credit
card recovery; and
[1993, c. 86, §1 (new).]
E. Disclosure pursuant to state or federal law or at the direction of a governmental entity pursuant to law or in response
to a court order.
[1993, c. 86, §1 (new).]
[1993, c. 86, §1 (new).]
3. A violation of this section constitutes a violation of the Maine Consumer Credit Code and the Maine Unfair Trade Practices
Act.
[1993, c. 86, §1 (new).]
Section History:
PL 1993,
Ch. 86,
§1
(NEW).
PL 1993,
Ch. 135,
§1
(NEW).
RR 1993,
Ch. 1,
§22
(COR).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-305. Recurring charges to credit or charge cards
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 3: CREDIT CARD RESTRICTIONS
§8-305. Recurring charges to credit or charge cards
If a sale of goods, services or insurance is charged to a credit card or charge card account on an annual basis without substantially
contemporaneous authorizations by the consumer, the seller shall inform the consumer of the voluntary nature of the charge
to the credit or charge card account and of the steps necessary to prevent this charge at least 30 days prior to the annual
charge. The card issuer may provide the notice on behalf of the seller. This section does not apply to insurance subject
to notice and cancellation rights pursuant to section 4-204.
[1993, c. 135, §1 (new).]
Section History:
PL 1993,
Ch. 135,
§1
(NEW).
RR 1993,
Ch. 1,
§22
(RNU).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-401. Correction of billing errors
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 4: FAIR CREDIT BILLING
§8-401. Correction of billing errors
1. If a creditor, within 60 days after having transmitted to an obligor a statement of the obligor's account in connection
with an extension of consumer credit, receives at the address disclosed under section 8-205, subsection 2, paragraph K, a
written notice, other than notice on a payment stub or other payment medium supplied by the creditor if the creditor so stipulates
with the disclosure required under section 8-205, subsection 1, paragraph G, from the obligor in which the obligor complies
with paragraphs A, B, and C, the creditor shall, unless the obligor has, after giving such written notice and before the expiration
of the time limits herein specified, agreed that the statement was correct, comply with subsection 2.
A. The obligor sets forth or otherwise enables the creditor to identify the name and account number, if any, of the obligor.
[1981, c. 243, §25 (new).]
B. The obligor indicates the obligor's belief that the statement contains a billing error and the amount of that billing error.
[1981, c. 243, §25 (new).]
C. The obligor sets forth the reasons for the obligor's belief, to the extent applicable, that the statement contains a billing
error.
[1981, c. 243, §25 (new).]
[1981, c. 243, §25 (new).]
2. Not later than 30 days after the receipt of the notice described in subsection 1, the creditor shall:
A. Send a written acknowledgment thereof to the obligor, unless the action required in paragraph B is taken within that 30-day
period; and
[1981, c. 243, §25 (new).]
B. Not later than 2 complete billing cycles of the creditor, in no event later than 90 days, after the receipt of the notice
and prior to taking any action to collect the amount, or any part thereof, indicated by the obligor under subsection 1, paragraph
B, either:
(i) Make appropriate corrections in the account of the obligor, including the crediting of any finance charges on amounts
erroneously billed, and transmit to the obligor a notification of such corrections and the creditor's explanation of any change
in the amount indicated by the obligor under subsection 1, paragraph B, and if any such change is made and the obligor so
requests, copies of documentary evidence of the obligor's indebtedness; or
(ii) Send a written explanation or clarification to the obligor, after having conducted an investigation, setting forth to
the extent applicable the reasons why the creditor believes that account of the obligor was correctly shown in the statement
and, upon request of the obligor, provide copies of documentary evidence of the obligor's indebtedness. In the case of a billing
error where the obligor alleges that the creditor's billing statement reflects goods not delivered to the obligor or his designee
in accordance with the agreement made at the time of the transaction, a creditor may not construe that amount to be correctly
shown unless he determines that the goods were actually delivered, mailed or otherwise sent to the obligor and provides the
obligor with a statement of that determination.
[1981, c. 243, §25 (new).]
After complying with the provisions of subsections 1 and 2 with respect to an alleged billing error, a creditor has no further
responsibility under this section if the obligor continues to make substantially the same allegation with respect to that
error.
[1981, c. 243, §25 (new).]
3. For the purposes of this section, a "billing error" consists of any of the following:
A. A reflection on a statement of an extension of credit which was not made to the obligor or, if made, was not in the amount
reflected on that statement;
[1981, c. 243, §25 (new).]
B. A reflection on a statement of an extension of credit for which the obligor requests additional clarification including
documentary evidence thereof;
[1981, c. 243, §25 (new).]
C. A reflection on a statement of goods or services not accepted by the obligor or his designee or not delivered to the obligor
or his designee in accordance with the agreement made at the time of a transaction;
[1981, c. 243, §25 (new).]
D. The creditor's failure to reflect properly on a statement a payment made by the obligor or a credit issued to the obligor;
[1981, c. 243, §25 (new).]
E. A computation error or similar error of an accounting nature of the creditor on a statement;
[1981, c. 243, §25 (new).]
F. Failure to transmit the statement required under section 8-205, subsection 2, to the last address of the obligor which has
been disclosed to the creditor, unless that address was furnished less than 20 days before the end of the billing cycle for
which the statement is required; and
[1981, c. 243, §25 (new).]
G. Any other error described in regulations of the administrator.
[1981, c. 243, §25 (new).]
[1981, c. 243, §25 (new).]
4. For the purpose of this section, "action to collect the amount, or any part thereof, indicated by an obligor under subsection
1, paragraph B" does not include the sending of statements of account, which may include finance charges or amounts in dispute,
to the obligor following written notice from the obligor as specified under subsection 1, if:
A. The obligor's account is not restricted or closed because of the failure of the obligor to pay the amount indicated under
subsection 1, paragraph B; and
[1981, c. 243, §25 (new).]
B. The creditor indicates the payment of that amount is not required pending the creditor's compliance with this section. Nothing
in this section shall be construed to prohibit any action by a creditor to collect any amount which has not been indicated
by the obligor to contain a billing error.
[1981, c. 243, §25 (new).]
[1981, c. 243, §25 (new).]
5. Pursuant to regulations of the administrator, a creditor operating an open-end consumer credit plan may not, prior to the
sending of the written explanation or clarification required under subsection 2, paragraph B, subparagraph (ii), restrict
or close an account with respect to which the obligor has indicated pursuant to subsection 1 that he believes such account
to contain a billing error solely because of the obligor's failure to pay the amount indicated to be in error. Nothing in
this subsection prohibits a creditor from applying against the credit limit on the obligor's account the amount indicated
to be in error.
[1981, c. 243, §25 (new).]
6. Any creditor who fails to comply with the requirements of this section or section 8-402 forfeits any right to collect from
the obligor the amount indicated by the obligor under subsection 1, paragraph B, and any finance charges thereon, except that
the amount required to be forfeited under this subsection may not exceed $50.
[1981, c. 243, §25 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-402. Regulation of credit reports
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 4: FAIR CREDIT BILLING
§8-402. Regulation of credit reports
1. After receiving a notice from an obligor as provided in section 8-401, subsection 1, a creditor or his agent may not directly
or indirectly threaten to report to any person adversely on the obligor's credit rating or credit standing because of the
obligor's failure to pay the amount indicated by the obligor under section 8-401, subsection 1, paragraph B, and that amount
may not be reported as delinquent to any 3rd party until the creditor has met the requirements of section 8-401 and has allowed
the obligor the same number of days, not less than 10, thereafter to make payment as is provided under the credit agreement
with the obligor for the payment of undisputed amounts.
[1981, c. 243, §25 (new).]
2. If a creditor receives a further written notice from an obligor that an amount is still in dispute within the time allowed
for payment under subsection 1, a creditor may not report to any 3rd party that the amount of the obligor is delinquent because
the obligor has failed to pay an amount which he has indicated under section 8-401, subsection 1, paragraph B, unless the
creditor also reports that the amount is in dispute and, at the same time, notifies the obligor of the name and address of
each party to whom the creditor is reporting information concerning the delinquency.
[1981, c. 243, §25 (new).]
3. A creditor shall report any subsequent resolution of any delinquencies reported pursuant to subsection 2 to the parties
to whom such delinquencies were initially reported.
[1981, c. 243, §25 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-403. Treatment of credit balances; returns
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 4: FAIR CREDIT BILLING
§8-403. Treatment of credit balances; returns
1. Whenever a credit balance in excess of $1 is created in connection with a consumer credit transaction through transmittal
of funds to a creditor in excess of the total balance due on an account, rebates of unearned finance charges or insurance
premiums or amounts otherwise owed to or held for the benefit of an obligor, the creditor shall:
A. Credit the amount of the credit balance to the consumer's account;
[1981, c. 243, §25 (new).]
B. Refund any part of the amount of the remaining credit balance, upon request of the consumer; and
[1981, c. 243, §25 (new).]
C. Make a good faith effort to refund to the consumer by cash, check or money order any part of the amount of the credit balance
remaining in the account for more than 6 months, except that no further action is required in any case in which the consumer's
current location is not known by the creditor and cannot be traced through the consumer's last known address or telephone
number.
[1981, c. 243, §25 (new).]
[1981, c. 243, §25 (new).]
2. With respect to any sales transactions where a credit card has been used to obtain credit, where the seller is a person
other than the card issuer, and where the seller accepts or allows a return of the goods or forgiveness of a debt for services
which were the subject of such sale, the seller shall promptly transmit to the credit card issuer, a credit statement with
respect thereto and the credit card issuer shall credit the account of the obligor for the amount of the transaction.
[1981, c. 243, §25 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007Title 9-A - §8-404. Prompt crediting of payments
Title 9-A: MAINE CONSUMER CREDIT CODE
Article VIII: TRUTH-IN-LENDING
Part 4: FAIR CREDIT BILLING
§8-404. Prompt crediting of payments
Payments received from an obligor under an open-end consumer credit plan by the creditor shall be posted promptly to the obligor's
account as specified in regulations of the administrator. The regulations shall prevent a finance charge from being imposed
on any obligor if the creditor has received the obligor's payment in readily identifiable form in the amount, manner, location
and time indicated by the creditor to avoid the imposition of a finance charge.
[1981, c. 243, §25 (new).]
Section History:
PL 1981,
Ch. 243,
§25,26
(NEW).
PL 1981,
Ch. 551,
§3
(AMD).
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
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