Rates of interest in the state of Maine are governed by laws prescribed in Title 9-B, Chapter 43, Section 432 of the Maine Statutes. As prescribed under Section 432, the maximum legal rate of interest on a loan made by a financial institution without a written agreement shall be six percent (6 %) per year. The statutes and regulations in the state of Maine do not have specific usury provisions.
In the case of interest rates on judgments, there is a two tier system in the state of Maine. According to Section 1602-B of Title 14, for judgments below $30,000, the interest rate is 15 percent. On the other hand, for judgments above $30,000, the interest rate is set at the 52 week average discount rate for Treasury bills plus an additional four percent (4 %).
Certain types of transactions exempt from the application of the laws on usury are:
- Pursuant to Section 3963 of Title 30-A, a pawnbroker cannot receive a finance charge of greater than 25 percent per month on that part of a loan that is less than $500. And not more than 20 percent per month for that part of a loan that is more than $500.
- Pursuant to Section 9-1201 of Uniform Commercial Code, a security agreement according to its terms agreed between the parties against purchasers of the collateral and creditors are exempted from the usury provisions of the State of Maine.
- Pursuant to Section 2-201 of Maine Consumer Credit Code, a seller may contract for and receive a finance charge above the prescribed legal limit. Rates for certain transactions are prescribed in this Section.
9-B M.R.S. § 432
Interest on loans
1. INTEREST ABSENT IN WRITING. The maximum legal rate of interest on a loan made by a financial institution, in the absence of an agreement in writing establishing a different rate, shall be 6 percent per year.
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14 M.R.S. § 1602-B
7. RATE ON ACCRUAL OF INTEREST PRIOR TO JULY 1, 2003. Notwithstanding subsection 3, for actions in which the interest begins to accrue, as determined pursuant to subsection 5, prior to July 1, 2003, the rate of prejudgment interest on civil actions other than those set forth in subsection 2 is as follows:
A. If the judgment does not exceed $ 30,000, the rate for prejudgment interest is 8%; and
B. If the judgment exceeds $ 30,000, the rate of prejudgment interest is the one-year United States Treasury bill rate, as defined in subsection 3, plus 1%.
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30-A M.R.S. § 3963
Pawn transaction terms
1. MAXIMUM FINANCE CHARGE ESTABLISHED. A pawnbroker may not directly or indirectly receive a finance charge of greater than 25% per month on that part of a loan that is $ 500 or less, nor more than 20% per month on that part of a loan that is more than $ 500, made upon property pawned. Accrued interest may not be incorporated as interest-bearing principal.
2. MINIMUM FINANCE CHARGE AUTHORIZED. Notwithstanding subsection 1, a pawnbroker may contract for and receive a minimum charge of not more than $ 2.50.
3. OTHER CHARGES PROHIBITED. A pawnbroker may not charge a fee in addition to a finance charge allowed under subsections 1 and 2.
4. TIME PERIOD. The initial redemption or repurchase period of a pawn transaction, not including an extension under subsection 5, may not exceed 60 days.
5. EXTENSION REQUIRED UPON REQUEST. A consumer is entitled to at least one extension of the pawn transaction of one month at the same rate of interest upon request in writing or in person.
6. VIOLATION. A violation of this section constitutes a violation of Title 9-A, section 5-201, subject to the civil remedies of the Maine Consumer Credit Code, and constitutes a violation of the Maine Unfair Trade Practices Act.
Nothing in this section prohibits a pawnbroker from charging a consumer a lower rate of interest than established by this section.
11 M.R.S. § 9-1201
General effectiveness of security agreement
1) Except as otherwise provided in this Title, a security agreement is effective according to its terms between the parties, against purchasers of the collateral and against creditors.
2) A transaction subject to this Article is subject to any applicable rule of law that establishes a different rule for consumers, including Title 9-A, Title 30-A, sections 3960 to 3964-A and Title 32, sections 11001 to 11054.
3) In case of conflict between this Article and a rule of law, statute or rule described in subsection (2), the rule of law, statute or rule controls. Failure to comply with a statute or rule described in subsection (2) has only the effect the statute or rule specifies.
4) This Article does not:
a) Validate any rate, charge, agreement or practice that violates a rule of law, statute or rule described in subsection (2); or
b) Extend the application of the rule of law, statute or rule to a transaction not otherwise subject to rule of law, statute or rule.
9-A M.R.S. § 2-201
Finance charge for consumer credit sales other than open-end credit
1. With respect to a consumer credit sale, other than a sale pursuant to open-end credit, a seller may contract for and receive a finance charge not exceeding that permitted by this section.
2. The finance charge, calculated according to the actuarial method, may not exceed the equivalent of the greater of either of the following:
A. The total of:
i) 30% per year on that part of the unpaid balances of the amount financed that is $ 1,000 or less;
ii) 21% per year on that part of the unpaid balances of the amount financed that is more than $ 1,000 but does not exceed $ 2,800; and
iii) 15% per year on that part of the unpaid balances of the amount financed that is more than $ 2,800; or
B. 18% per year on the unpaid balances of the amount financed.
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