What a payday loan costs — before Maine’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in Maine
- Rate cap
- Tiered cap — a maximum 30% APR on unpaid balances of $1,000 or less (lower rates on larger amounts) under the Maine Consumer Credit Code.
- Key law
- Maine Consumer Credit Code, 9-A M.R.S. (supervised-lender provisions); enforced by the Bureau of Consumer Credit Protection.
- Enforcement
- No major tribal-specific action verified; the Bureau licenses and examines supervised lenders.
Maine caps finance charges at 30% per year on balances of $1,000 or less and bars tribal lenders without a federally-approved compact.
What it means for a Maine borrower
Loans above the tiered cap require a supervised-lender license, and tribal lenders are generally not permitted absent a federally-approved compact — making over-cap loans challengeable.
If you already have a payday loan in Maine
A loan that violates Maine’s rate limits may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- File a complaint with the Maine Bureau of Consumer Credit Protection.
- Because tribal lenders generally need a state license or compact, an unlicensed high-rate loan may be unenforceable.
Cheaper first — try these before a payday loan in Maine
Payday Loans and tribal lenders in Maine
Many online lenders that market payday loans to Maine residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Maine residents and how state law applies to them, see the Maine tribal-lending page.
Tribal loans in Maine →Frequently asked questions
Are payday loans legal in Maine?
In Maine, payday loans are legal but tightly limited. The state caps loan size, fees or rollovers, so a legal payday loan looks different — and costs less — than the ~400% APR norm, and any lender exceeding those limits is out of compliance.
What is the maximum payday loan rate in Maine?
Tiered cap — a maximum 30% APR on unpaid balances of $1,000 or less (lower rates on larger amounts) under the Maine Consumer Credit Code.
What can I do about a payday loan I already have in Maine?
Because Maine restricts high-cost payday loans, a loan that exceeds the state limit may be partly or fully uncollectible. File a complaint with the Maine Bureau of Consumer Credit Protection. This is general information, not legal advice.