AR HB1572

Amends Section 3 of Amendment 89 to the Arkansas Constitution to allow the General Assembly to set maximum interest rates on loans of $5,000 or less, separate from the standard 17% per annum cap on other loans.

If the General Assembly does not establish a specific rate for loans under $5,000, the default 17% maximum interest rate applies.

Findings indicate that unbanked and underbanked Arkansas consumers with low credit scores cannot access traditional credit sources due to federal preemption of state interest rate regulation.

General Assembly declares the amendment is germane and consistent with Amendment 89, which passed November 2, 2010 with 448,711 votes for and 250,167 votes against.

Declares an emergency, making the act effective immediately upon the Governor's approval, non-action, or veto override to address irreparable harm to citizens lacking access to consumer credit.