On February 20, 2026, the Maine legislature passed new banking law regulations aimed at protecting consumers from predatory lending practices and ensuring greater transparency in financial transactions. The new laws, which were championed by consumer advocacy groups and endorsed by Governor Samantha Parker, are set to take effect on March 1, 2026.One of the key provisions of the new banking laws is the establishment of a cap on interest rates for certain types of loans, including payday loans and auto title loans. Under the new regulations, lenders will be prohibited from charging interest rates that exceed 36%, a move aimed at curbing the cycle of debt that often traps low-income borrowers.In addition to the interest rate cap, the new banking laws also require lenders to provide clear and concise information about the terms of a loan, including the total amount borrowed, the interest rate, and any fees associated with the loan. This transparency is intended to help consumers make informed decisions about their finances and avoid falling victim to hidden fees and exorbitant interest rates.Furthermore, the new regulations empower the Maine Bureau of Consumer Credit Protection to enforce these laws and crack down on lenders who violate them. The Bureau will have the authority to investigate consumer complaints, conduct audits of lending institutions, and impose fines or other penalties on lenders found to be in violation of the new regulations.Governor Parker praised the passage of the new banking laws, stating that they represent a significant step forward in protecting consumers from unscrupulous lending practices. She emphasized the importance of financial literacy and the need for greater regulation to ensure that all Mainers have access to fair and affordable financial services.Overall, the passage of the new banking laws in Maine marks a victory for consumer advocates and a positive development for the state’s financial industry. With these regulations in place, Maine residents can rest assured that they are better protected from predatory lending practices and can make more informed decisions about their financial future.