This bill would put teeth into the Arkansas Constitution’s usury limit of 17% annual interest on consumer loans, which was adopted by the people of Arkansas in 1982 as Amendment 60 to our state Constitution.

Individuals who borrow money from payday lenders in Arkansas typically pay fees equivalent to an annual percentage rate of 372 % to 869 %. House Bill 1036 would create an offense of “unlawful consumer loans” for knowingly charging more than 17 percent annual interest on a consumer loan, and prescribe a $300 fine upon conviction for a violation. Each transaction involving an unlawful consumer loan would be a separate offense.