Maine Revised Statutes Title 30-A Sec. 3963 – Pawn transaction terms
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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.
[PL 1993, c. 59, §3 (NEW).]
Terms Used In Maine Revised Statutes Title 30-A Sec. 3963
- Contract: A legal written agreement that becomes binding when signed.
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- in writing: include printing and other modes of making legible words. See Maine Revised Statutes Title 1 Sec. 72
- Minimum finance charge: The minimum, or fixed, finance charge that will be imposed during a billing cycle. A minimum finance charge usually applies only when a finance charge is imposed, that is, when you carry over a balance. Source: Federal Reserve
- Month: means a calendar month. See Maine Revised Statutes Title 1 Sec. 72
- Pawn transaction: means the lending of money on the security of pledged tangible personal property that is delivered to a pawnbroker and held by the pawnbroker. See Maine Revised Statutes Title 30-A Sec. 3960
- Pawnbroker: means a person who engages in pawn transactions. See Maine Revised Statutes Title 30-A Sec. 3960
- Person: means an individual, corporation, partnership, firm, organization or other legal entity. See Maine Revised Statutes Title 30-A Sec. 2001
2. Minimum finance charge authorized. Notwithstanding subsection 1, a pawnbroker may contract for and receive a minimum charge of not more than $2.50.
[PL 1993, c. 59, §3 (NEW).]
3. Other charges prohibited. A pawnbroker may not charge a fee in addition to a finance charge allowed under subsections 1 and 2.
[PL 1993, c. 59, §3 (NEW).]
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.
[PL 1993, c. 59, §3 (NEW).]
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.
[PL 1995, c. 397, §15 (AMD).]
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.
[PL 1993, c. 59, §3 (NEW).]
Nothing in this section prohibits a pawnbroker from charging a consumer a lower rate of interest than established by this section. [PL 1993, c. 59, §3 (RPR).]
SECTION HISTORY
PL 1987, c. 737, §§A2,C106 (NEW). PL 1989, c. 6 (AMD). PL 1989, c. 9, §2 (AMD). PL 1989, c. 104, §§C8,10 (AMD). PL 1993, c. 59, §3 (RPR). PL 1995, c. 397, §15 (AMD).