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, along with open-end personal lines of credit, in which the level of credit is $2,500 or even more but lower than $10,000 (вЂњcovered loansвЂќ). Before the enactment of AB 539, the CFL currently capped the rates on consumer-purpose loans of lower than $2,500.
- Prohibiting fees on a covered loan that surpass a straightforward yearly rate of interest of 36% as well as the Federal Funds speed set by the Federal Reserve Board. Continue reading “California Enacts Rate Of Interest and Other Limitations on Customer Loans”