Bill > HB262

This bill introduces new protections for first-time vehicle purchasers by limiting interest rates based on credit scores. Specifically, the legislation adds a new section to Hawaii's usury laws that caps interest rates for consumers buying their first vehicle at two percent for those with a credit score below 600, and zero percent for those with a credit score of 600 or higher. The bill allows consumers who are charged interest rates higher than these limits to seek redress through existing legal channels outlined in the state's usury laws. If a first-time vehicle buyer is charged an interest rate that exceeds these caps, they would be entitled to pursue remedies under the state's usury statutes. The new regulations will take effect on January 1, 2026, and do not apply to rights, penalties, or legal proceedings that existed prior to the effective date. This legislation aims to protect consumers from potentially predatory lending practices in the auto financing market by providing more favorable lending terms for those purchasing their first vehicle.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=262&year=2026