AUGUSTA — A measure sponsored by Rep. Dan Sayre, D-Kennebunk, aimed at helping incarcerated Mainers build their credit scores before release, was recently signed into law by Gov. Janet Mills.
Working with the Maine Department of Corrections (DOC), Midcoast Federal Credit Union had sought to extend their existing credit-builder loan program to incarcerated people, but came up against a barrier in the law: the principal of the loan was subject to automatic deductions by the DOC, even though recipients would still be required to pay back the full loan amount.
LD 97 eliminates that barrier by exempting credit-builder loans from those fees, allowing individuals to work more easily towards building a solid credit score. A good credit history is essential to securing necessities like housing, transportation and employment, all of which are fundamental to reintegrating into civilian life.
“When we reduce barriers to economic stability, no matter the individual’s past, we are encouraging folks to move forward in their lives and help to strengthen their communities,” said Sayre. “This legislation will help formerly incarcerated Mainers establish a strong credit score upon reentry, setting them up to become productive members of their communities once more.”
The new law will go into effect on Friday, June 20, 2025.
Rep. Dan Sayre is serving his second term in the Maine Legislature and represents House District 135, which includes part of Kennebunk. He serves on the Legislature’s Taxation Committee.
Contact:
Brian Lee (Sayre) | 305-965-2744