California Enacts Rate Of Interest and Other Limitations on Customer Loans

California Enacts Rate Of Interest and Other Limitations on Customer Loans

The key provisions include as explained in our Client Alert on the bill

  • Imposing price caps on all consumer-purpose installment loans, including signature loans, auto loans, and automobile name loans, in addition to open-end credit lines, where in fact the level of credit is $2,500 or even more but significantly less than $10,000 (“covered loans”). Ahead of the enactment of AB 539, the CFL currently capped the prices on consumer-purpose loans of not as much as $2,500.
  • Prohibiting fees on a loan that is covered surpass a straightforward yearly interest of 36% and the Federal Funds speed set by the Federal Reserve Board. Continue reading “California Enacts Rate Of Interest and Other Limitations on Customer Loans”