Maine Enacts "True Lender" Legislation, Amends Consumer Credit Code To Include Anti-Evasion Provisions

Maine's Governor, Janet Mills, recently signed S.P. 205/L.D. 522, which amended the Consumer Credit Code to protect consumers from predatory and fraudulent lending practices. In particular, the amendments include an anti-evasion provision under which purported bank agents or service providers are deemed "lenders" for the purposes of statute. The amendment contains the following key provisions:

• Covered entities "may not engage in any device, subterfuge or pretense to evade the requirements of this Article, including, but not limited to.making, offering, assisting, or arranging a debtor to obtain a loan with a greater rate of interest, consideration or charge than is permitted by this Article through any method."