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
Does an online or tribal lender have to follow Maine's payday loan rules?
Maine applies its rules to loans made to its residents, wherever the lender sits. Tribal lenders argue that sovereign immunity puts them outside state rate caps — an argument courts have accepted in some cases and rejected in others. For which tribal brands lend to Maine residents and how the state treats them, see the Maine tribal-loan page.
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 — so find out before you pay a collector anything more. The steps on this page start with the lender's license. This is general information, not legal advice.