Credit card ‘holds’ bill passes in weakened form

AUGUSTA – A bill that calls for more public disclosure about holds placed on debit or credit card purchases won final approval Friday in the Maine Senate and was sent to Gov. John Baldacci for his signature.

The consumer protection bill was weakened from its original version, which would have prohibited merchants from placing holds for amounts larger than the actual purchase.

The bill’s sponsor, Rep. Walter Ash, said many consumers have bounced checks and been charged fees for insufficient funds because of the holds.

As amended, the Belfast Democrat’s bill calls for notices by businesses of the amount of debit card holds and requires the state business regulation department to develop a consumer awareness brochure that explains debit card holds. The brochures would be available free at banks and stores.

In addition, the state attorney general must report on the number of consumer complaints it receives about debit card holds.

Ash said he’s not completely satisfied with the amended bill, but is glad the issue has gotten out to consumers.

“I’m going to keep a close eye on it and if it’s a problem in the future, we’ll be back,” Ash said Friday.