An Act to Establish a Limit on the Interest Rate Charged for Revolving Loans
Summary
LD201 would cap the interest rate that creditors may charge on consumer revolving loans at 24.9% per year. The bill specifically amends Maine’s consumer credit and credit card provisions to lower the allowable finance charge for credit card purchases and lender credit cards from the current 30% rate to 24.9%, while preserving existing exclusions for certain open-end credit plans secured by a consumer’s principal dwelling or by a second or vacation home.
In practical terms, the bill would change the maximum lawful finance charge on covered revolving credit products, including credit cards, under Maine law. It would affect creditors, card issuers, lenders offering revolving consumer credit, and borrowers who use credit cards or similar revolving loan products. The bill appears aimed at reducing the cost of high-interest consumer debt and tightening state usury-style limits for this category of lending.
Impact
The bill would amend Maine statutes governing consumer credit sales and lender credit cards by replacing the existing 30% annual finance charge cap with a 24.9% cap for covered revolving loans. It would not eliminate revolving credit, but it would reduce the maximum interest rate that may be imposed on unpaid balances, thereby directly affecting card issuers and other creditors operating in Maine. The bill leaves intact current exceptions for certain home-secured open-end credit plans.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available materials. Based on the bill text alone, the measure appears consumer-protection oriented, with an emphasis on lowering borrowing costs for Maine residents who use revolving credit. The absence of recorded discussion makes the overall sentiment difficult to gauge beyond the bill’s apparent policy intent.
Contention
The main point of contention likely concerns the appropriate level of interest-rate regulation for consumer revolving credit. Supporters would likely argue that a 24.9% cap protects borrowers from excessive finance charges and debt traps, while opponents may contend that lowering the cap could reduce credit availability, especially for higher-risk borrowers, or constrain lenders’ pricing flexibility. Because no transcripts or votes are available, no specific lawmakers, industry groups, or consumer advocates can be identified as having taken these positions in the provided record.
A bill for an act relating to interest rates and charges on regulated loans, and consumer credit transaction service charges. (Formerly HSB 524.) Effective date: 07/01/2026.