AR HB1748

Amends Arkansas Code § 4-57-101(c) to clarify how interest is calculated and payments are applied on consumer loans with partial payments.

Requires partial payments on consumer loans to be applied first to accrued interest, with any excess applied to reduce the principal balance.

Prohibits unpaid interest from being added to the principal balance of a consumer loan if a payment falls short of the interest due at the time of payment.

Exempts commercial credit, including commercial real estate financing transactions, from these interest calculation and payment application requirements.

Defines "consumer loan" as extensions of credit for personal, family, or household purposes, excluding credit card debt, open account debt, and installment loans.