The bill amends the Credit Reform Act of 1995 by revising Section 4 to impose stricter regulations on interest rates charged by regulated lenders. Specifically, it prohibits these lenders from charging any rate of interest or finance charge for an extension of credit that exceeds 10% per annum, replacing the previous cap of 25%. This change aims to protect consumers from excessively high interest rates.

Additionally, the bill clarifies that the interest or finance charge calculated on the principal balance for personal, family, or household credit must be computed solely on the unpaid balance. This amendment ensures transparency and fairness in how interest is applied, reinforcing consumer protections in credit transactions.

Statutes affected:
House Introduced Bill: 445.1854