Assembly Bill 763 aims to regulate interest rates on consumer loans by establishing a maximum annual percentage rate (APR) of 36 percent for licensed lenders. The bill amends existing statutes to clarify that a person is considered to be making a consumer loan if they hold the predominant economic interest in the loan or facilitate the loan in various capacities, regardless of their title. Additionally, the bill requires licensed lenders to provide more detailed annual reports, including the number of loans with APRs exceeding 18 percent, average APRs, and data on refinanced loans, defaults, and repossessions.

The legislation also includes provisions to prevent circumvention of the new regulations, specifying that no person may engage in deceptive practices to evade the requirements for licensed lenders. It maintains the current maximum interest rate of 12 percent for consumer loans after their final scheduled maturity date and exempts pawnbroker loans from the 36 percent cap. The bill further mandates that the Department of Financial Institutions submit an annual report to the legislature summarizing the data collected from licensed lenders.

Statutes affected:
Bill Text: 138.09(1g)(a)1, 138.09, 138.09(7)(bp), 422.201(3), 422.201