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 #31

 

(Formerly Administrative

Interpretation #34)

 

            April 8, 1976

 

 

RE:      Minimum Charge/Open-End Credit

 

 

Dear

 

 

            You have inquired whether a minimum charge of $.50 as allowed by Section 2.202(4) may be imposed on the unpaid balance in addition to the 1½% per month finance charge allowed under Section 2.202(3).  Section 2.202(4) allows a $.50 minimum charge where the finance charge of 1½% per month of the unpaid balance is less that $.50.  In any case where the finance charge at the disclosed rate exceeds $.50 then subsection 3 of Section 2.202 would supersede and a minimum charge would not be permissible.

 

 

            We are unable to perceive any intention on the part of either the drafters of the Code or the Legislature to allow a $.50 minimum charge in addition to the finance charge allowed.

 

 

                                                                                    Respectfully,

 

                                                                                                     

 

                                                                                    John E. Quinn

                                                                                    Superintendent

 

 

 

JEQ/jh