Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
030 - BUREAU OF CONSUMER CREDIT PROTECTION
Chapter 190 - ENFORCEMENT POLICY GUIDELINES
Section 030-190-3 - DEFINITIONS

A. "Overcharge" means an actual or potential charge to a consumer in excess of that allowed by law. The term includes an amount equal to the difference between: an understated APR and the true APR; and an understated Finance Charge and the true Finance Charge.

B. "Understated APR" means a disclosed annual percentage rate that is more than 1/8 of one percentage point below the annual percentage rate calculated in accordance with Article VIII of the Code. In the case of irregular transactions, a 1/14 of 1% tolerance is allowed. For purposes of this rule, an irregular transaction is one that includes one or more of the following features: multiple advances, irregular payment periods, or irregular payment amounts (other than an irregular first period or an irregular first or final payment).

C. "Understated Finance Charge" means a disclosed finance charge that is less than the finance charge generated by applying the annual percentage rate, calculated in accordance with Article VIII of the Code and reduced by the appropriate tolerances specified in subsection B, to the Amount Financed.

D. "Lump Sum Method" means a method of reimbursement under which a cash payment equal to the total overcharge (rounded to the nearest $1.00) will be made to a consumer.

E. "Lump Sum/Payment Reduction Method" means a method of reimbursement under which a cash payment which will fully compensate the consumer for past overcharges will be returned to the consumer and the remaining payment amounts on the loan will be reduced to eliminate future overcharges.