Maine Payday Loan Laws

Maine has some of the strictest laws in the country regarding payday loans. The regulations stated in Me. Rev. Stat. Ann. tit 9-A §1-201 and Me. Rev. Stat. Ann. tit. 9-A §1-301. The laws that are in place make it difficult for a lender, or borrower to obtain a payday loan. There are very few loan centers in the state.

Maine uses fixed rates, in most instances, instead of percentages. Their breakdown is below.

• Lenders can charge $15 in fees for loans up to $250
• A charge of $25 is applied for loans over $250
• Fees cannot exceed $5 for a loan up to $75
• No more than 30% can be charged for loans between $250 and $2,000
• There is no maximum loan amount set in Maine
• There are no time frames as far as loan terms go

With these laws in place and the fact that there are very few payday loan facilities in the state of Maine, many of the residents turn to online companies. These companies are operating illegally. They do no background work to make sure you can actually pay the money back since they cannot see a paystub. They only check to see if you are a real person and that you have a checking account to debit their funds back from. There is a very long list of illegally operating payday loan companies, both physical and online, in the state of Maine.

The state of Maine does not allow a person or establishment to cash a post- dated check. This does hurt the loan companies. Most require that borrowers write a post-dated check to be automatically deposited on the day that they are written for. In lieu of the post dated check, online borrowers are required to sign an agreement that permits the loan company to make the debit or debits from their checking account on a specifically schedule day.

There is not much protection for online borrowers. These decisions are made solely by the borrower to obtain monies from this online source. Most are a scam. Maine does hold strict laws for the lenders and is attempting to ban payday loans entirely. It is in an effort to protect their residents from financial ruin. Payday loans charge a lot for their services. It ends up getting consumers in trouble financially; sometimes it is a hole that they can never dig out of.

Comments are closed.