Bill > SB1689

This bill, concerning consumer lenders, primarily aims to update and clarify regulations related to consumer loans, including increasing certain loan limits and adjusting associated fees and interest rate calculations. Key changes include raising the maximum amount for a "consumer loan" (a closed-end loan) from $10,000 to $50,000 and for a "consumer revolving loan" (an open-end loan) from $10,000 to $30,000, while also removing the specific category of "home equity revolving loans" and incorporating their provisions into the general consumer revolving loan rules. The bill also adjusts the maximum loan origination fee to $300 and modifies the tiered interest rate structure for larger consumer loans. Additionally, it updates disclosure requirements, clarifies how finance charges are computed, and makes changes to insurance provisions related to consumer loans. The bill also includes provisions for a "regulatory sandbox," allowing for testing of financial innovations with specific consumer and loan limits, and sets an effective date for these changes to contracts or addendums entered into after December 31, 2026.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/85408