What a title loan costs — before Maine’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Maine
- Rate cap
- Maine Consumer Credit Code supervised-loan finance charge (9-A M.R.S. 2-401): 30%/yr up to $2,000, 24% on $2,000–$4,000, 18% above $4,000. No mechanism authorizes triple-digit-APR single-payment title loans.
- Key law
- Maine Consumer Credit Code, Title 9-A M.R.S.; finance-charge ceiling at 9-A M.R.S. 2-401.
- Enforcement
- Administered by Maine’s Bureau of Consumer Credit Protection, which licenses non-depository consumer lenders under Title 9-A.
9-A M.R.S. 2-401 caps the finance charge at 30%/yr on the first $2,000 of a consumer loan (24% and 18% on higher tiers).
What it means for a Maine borrower
Maine’s interest-rate ceiling caps consumer loans at 30% per year (and less on larger balances), far below what a single-payment car title loan business model requires. As a result, high-cost car title lending is not viable and is generally not offered in Maine.
If you already have a title loan in Maine
A loan that violates Maine’s ban may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check whether the lender is licensed in Maine — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Maine attorney general and the CFPB.
- Ask whether the balance is even collectable under Maine law before you pay a collector.
Cheaper first — try these before a title loan in Maine
Title Loans and tribal lenders in Maine
Many online lenders that market title 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 title loans legal in Maine?
In Maine, a high-cost single-payment title loan is not legally viable. The state’s rate cap or an outright ban makes a ~300% APR title loan void or unavailable, so licensed title lenders do not operate — and a lender that lends anyway is on weak legal footing.
What is the maximum title loan rate in Maine?
Maine Consumer Credit Code supervised-loan finance charge (9-A M.R.S. 2-401): 30%/yr up to $2,000, 24% on $2,000–$4,000, 18% above $4,000. No mechanism authorizes triple-digit-APR single-payment title loans.
What can I do about a title loan I already have in Maine?
Because Maine effectively bans high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Maine — many high-cost online lenders are not. This is general information, not legal advice.