HB321 Summary

• Proposes a constitutional amendment to cap the maximum interest rate on consumer loans, lines of credit, and other financial products at 36 percent per annum.

• Prevents the Alabama Legislature from authorizing interest rates exceeding 36 percent per annum through general or local law.

• Defines interest rates according to the Federal Reserve Board's Regulation Z of the Truth in Lending Act.

• Notes that consumer loan interest rates in Alabama have historically ranged from 6 percent to over 400 percent annually.

• Requires voter approval through a statewide election conducted in accordance with Alabama Constitution Sections 284 and 285.