Bill
LD 201
LD 201 would cap the annual percentage rate on revolving loans to shield borrowers from excessive interest charges.
LD 201 — An Act To Establish A Limit On The Interest Rate Charged For Revolving Loans (Maine, 132nd Legislature)
Overview
- Bill number: LD 201
- Title: An Act To Establish A Limit On The Interest Rate Charged For Revolving Loans
- Sponsor: Sen. Libby of Cumberland
- Committee: Health Coverage, Insurance and Financial Services
- Introduced: January 14, 2025
- Status: Dead (Pursuant to Joint Rule 310.3 Placed in Legislative Files)
- Fiscal note: Preliminary Fiscal Impact Statement indicates No fiscal impact; Fiscal Note Required: No
Purpose and intent
- The bill would establish a statutory limit on the interest rate charged for revolving loans. The stated aim is to protect consumers from excessively high rates tied to revolving credit arrangements (such as lines of credit or credit products that revolve with outstanding balances).
Key provisions (as known from available materials)
- The core provision would set a cap or limit on the annual percentage rate (APR) applicable to revolving loans. Specific details such as the exact rate cap, how the rate is calculated, and which products qualify or are exempt are not provided in the available documents.
- The bill would define terms related to “revolving loans” and outline enforcement mechanisms and penalties for noncompliance (these details would be in the bill text itself).
- Effective date and any phase-in timelines, exemptions (e.g., for banks or credit unions), and regulatory authority responsibilities would typically be specified, but the exact text is not included in the materials provided.
Affected parties and potential impacts
- Borrowers: Potential protection from high interest charges on revolving credit may improve affordability and reduce the total cost of credit for consumers using revolving loan products.
- Lenders and financial services providers: Lenders offering revolving loans would need to adjust products and pricing to comply with the cap. There could be changes to product availability, pricing structures, and underwriting criteria.
- Regulators: The bill would require enforcement mechanisms and oversight to ensure compliance with the rate limit.
Procedural and timeline aspects
- January 14, 2025: Introduced and referred to the Committee on Health Coverage, Insurance and Financial Services.
- January–February 2025: Work session held (February 12) and voting recorded as ONTP (Ought Not To Pass).
- February 25, 2025: Reported Out – ONTP.
- March 4, 2025: Placed in Legislative Files (DEAD) pursuant to Joint Rule 310.3, indicating no further action in this session.
- Fiscal note timeline: Approved February 3, 2025; indicates no fiscal impact.
Notes
- The available materials do not include the full text of LD 201. All provisions beyond the broad aim to limit revolving-loan interest rates are not specified here. The bill’s dead status means it did not advance in the current legislative session.
Compiled from official sources — confirm details with the bill’s official record.
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