LD314

Establishes consumer protections for small dollar loans in Maine, including limitations on multiple loans and collection practices.

The Maine Small Dollar Consumer Protection Act sets rules for supervised lenders offering small dollar loans, defined as unsecured loans up to $2,500. It prohibits lenders from entering into agreements with consumers who already have an open small dollar loan. Consumers must receive a signed copy of the loan agreement and can cancel the agreement within a certain period. The act also bans prepayment penalties and criminal proceedings for collection. It mandates disclosures about loan terms and fees and requires lenders to report loan terms and consumer performance to credit agencies.