JOHN E. QUINN

SUPERINTENDENT

DEPARTMENT OF BUSINESS REGULATION

BUREAU OF CONSUMER PROTECTION

STATE HOUSE ANNEX 51 Chapel Street

AUGUSTA, MAINE 04330

(207)289-3731

 

ADVISORY RULING #33

 

(Formerly Advisory Opinion #1)

 

(Superseded by Rule 190,

Enforcement Policy Guidelines)

 

            May 12, 1976

 

Re: Incorrect APR Disclosures

 

            Despite the fact that creditors in Maine have been subject to Truth-in-Lending since 1969, the Bureau examiners continue to find consumer credit transactions where the creditor fails to properly disclose either the APR or the amount of the finance charge.  This includes a number of cases where the creditor fails to disclose any APR or finance charge.  While I agree that certain requirements of Truth-in-Lending appear to place an undue burden upon creditors, meaningful disclosure of the APR and the amount of the finance charge are essential to the protection and education of the credit-consumer.

            This letter is to advise you that it shall be Bureau policy that creditors will be limited to imposing a finance charge no greater than the lower of the disclosed APR or the finance charge.  In any case where the creditor refuses to voluntarily rebate or charge off against the consumer's obligation the excess charge, the matter will be pursued by the Bureau as an overcharge violation.  Creditors will not, however, be required to reduce the amount of the finance charge by more than $1,000 in line with the civil liability limit established under Truth-in-Lending.

ADVISORY RULING #33

MAY 12, 1976

 

PAGE 2

 

            The Bureau's notice to consumers will state the Bureau's assumption that any penalty awarded by the courts would be reduced by the amount rebated by the creditor in compliance with this Advisory Opinion.

 

 

                                                                                    ss/ John E. Quinn

                                                                                    John E. Quinn

                                                                                    Superintendent

                                                                                    Bureau of Consumer Protection

 

 

JEQ/jh