Bill > HB24

This bill establishes a maximum lawful interest rate of thirty-six percent per year for most extensions of credit, with certain exceptions, and clarifies that the calculation of this rate must include all associated charges and fees, such as finance charges and ancillary products. Contracts with interest rates exceeding this cap, entered into after July 1, 2015, will be considered void regarding both principal and interest, meaning neither the borrower nor the lender can enforce them. However, this thirty-six percent cap does not apply to federally insured financial institutions or government-issued bonds. Additionally, if the United States prime lending rate, which is a benchmark interest rate set by major banks, exceeds ten percent, the maximum lawful interest rate can increase to thirty percentage points above the prime rate. The bill also amends existing laws to reflect these changes and outlines penalties for knowingly charging excessive interest, including forfeiture of interest and the possibility of recovering double the amount of usurious interest paid.