§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.
[PL 1993, c. 59, §3 (NEW).]
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).