League Staff Busy Advocating for Credit Unions on Bills in Augusta

This week in Augusta, the League presented testimony on three bills and had a work session on two others. In front of the Judiciary Committee, Robert Caverly, Vice President of Advocacy & Outreach, spoke in favor of LD 184, which would commission a study on the foreclosure process in Maine (currently the third longest of any state). The Judiciary Committee also heard Caverly testify in favor of LD 353, which would create a Commission to recommend methods for combatting deed fraud. Deed fraud has been on the rise as technology makes it easier for fraudsters to create forged documents.  

Concurrently, Krista Simonis, Director of Governmental Affairs, testified in front of the Health Coverage, Insurance, and Financial Services Committee (HCIFS) regarding LD 314, which purports to enact small dollar loan protections. The League joined consumer advocates, the Attorney General, Community CU, the Department of Consumer Credit Protection, and others in opposing the bill. While much of the text contained provisions for a small dollar loan program, it struck a portion of law that has required out-of-state rent-a-bank schemes to operate within Maine’s current rate caps since 2021.  

The HCIFS Committee also voted on two bills that were heard last week: LD 201 and LD 142. LD 201, which would have lowered Maine’s rate caps and introduced a cap for credit cards for state-chartered banks, was voted Ought Not to Pass unanimously by the Committee. LD 142, which was an attempt to stop state-chartered institutions from charging duplicate NSF fees for re-presented items, was voted out of Committee on a split report. Six members of the Committee voted Ought Not to Pass, while the remainder of the Committee voted for an amendment that changes the bill significantly. Instead of instituting a law regarding duplicate NSF fees on re-presented items, the amended bill would direct the Bureau of Financial Institutions to issue guidance to state-chartered institutions that is in-line with existing NCUA and FDIC guidance on this issue. The League’s Governmental Affairs team supports the amended version.    

The Legislature will be out of session next week and will return on February 24. Work sessions for the public hearings will be expected at that time.