MAINE STATUTES

TITLE 9-A. MAINE CONSUMER CREDIT CODE

ARTICLE II. FINANCE CHARGES AND RELATED PROVISIONS

PART 5. CONSUMER CREDIT TRANSACTIONS: OTHER CHARGES AND MODIFICATIONS

§ 9-A:2-506 Advances to perform covenants of consumer

1. If the agreement with respect to a consumer credit transaction contains covenants by the consumer to perform certain duties pertaining to insuring or preserving collateral and the creditor pursuant to the agreement pays for performance of the duties on behalf of the consumer, he may add the amounts paid to the debt. Within a reasonable time after advancing any sums, he shall state to the consumer in writing the amount of the sums advanced, any charges with respect to this amount, and any revised payment schedule and, if the duties of the consumer performed by the creditor pertain to insurance, a brief description of the insurance paid for by the creditor including the type and amount of coverage. No further information need be given.

2. A finance charge may be made for sums advanced pursuant to subsection 1 at a rate not exceeding the rate stated to the consumer pursuant to law in a disclosure statement, except that with respect to open-end credit the amount of the advance may be added to the unpaid balance of the debt and the creditor may make a finance charge not exceeding that permitted by the appropriate provisions on finance charge for consumer credit sales pursuant to open-end credit, section 2-202, or for consumer loans, section 2-402, whichever is appropriate.

3. This section does not apply to consumer leases.

MAINE STATUTES

TITLE 9-A. MAINE CONSUMER CREDIT CODE

ARTICLE II. FINANCE CHARGES AND RELATED PROVISIONS

PART 5. CONSUMER CREDIT TRANSACTIONS: OTHER CHARGES AND MODIFICATIONS

§ 9-A:2-501 Additional charges

3. Charges permitted under this section and any other charges specifically excluded from the definition of "finance charge" in section 1-301, subsection 19, are permissible charges in addition to, and excluded from the calculation of, maximum finance charges set forth in Parts 2 and 4. Unless otherwise expressly prohibited by this Act and except on retail credit card accounts, a creditor may contract for and receive additional charges not authorized by this section or by section 1-301, subsection 19, if such additional charges, together with all other finance charges applicable to a consumer credit transaction, do not exceed the applicable maximum finance charge under this Act.

Click here to return to the summary page.