Arkansas Gov. Asa Hutchinson on April 11, 2017, publicly signed into law Senate Bill 658 by state Sen. Jason Rapert. The bill, which closes a loophole used by predatory lenders to charge Arkansans up to 280 percent Annual Percentage Rate (APR) interest, becomes Act 944 of 2017.
Arkansas consumers are the winners with state House of Representatives approval of Senate Bill 658 by state Sen. Jason Rapert, which closes a loophole used by out-of-state predatory lenders.
Warren Searls, AARP Arkansas Lead Volunteer for Advocacy and Executive Council member, in this video explains that while the Arkansas Constitution "caps" interest on consumer loans at 17 percent Annual Percentage Rate (APR), an out-of-state lender is using a loophole to charge up to 280 percent APR! Senate Bill 658, which has passed the Arkansas Senate and is pending in the state House of Representatives, will seal shut this phantom loophole. AARP Arkansas strongly supports SB658—because less than eight years after payday lenders left Arkansas, we can't afford to let predatory lenders regain a foothold in our state.
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