Changes in the Present Maine Law Created by the Maine State Consumer Credit Code

The Maine Consumer Credit Code [M3C] was enacted by the Special Session of the 106th Legislature of the State of Maine, and will become effective on January 1, 1975. It will regulate almost all consumer credit transactions not secured by first mortgages on real estate. The statute also creates a new, self-financed Bureau of Consumer Protection under the Department of Business Regulation. This article will first discuss the legislative history of the M3C. Second, it will discuss the scope and jurisdiction of the M3C in comparison with the total scope of all the prior statutes. Third, the article will discuss changes in the structure of the industry and in the competitive relationships between types of creditors, identifying the distinctions still made between creditors under the M3C, and the freedom of new competitors to enter the credit market. Fourth, it will discuss the interest rates and other charges allowed to each type of creditor, and compare these charges to those available under prior law in terms of both legal and probable economic impact. Fifth, it will discuss the expansion of protections to consumers against abuse by unscrupulous creditors, identifying retained, expanded, and new concepts. Sixth, and most importantly, this article will examine the mechanisms available for enforcing the M3C, both for private enforcement and for public enforcement through the new Bureau of Consumer Protection.