AR HB1958

Adds a new definition of "guaranty" to Arkansas Code § 4-91-102, defining it as a contractual arrangement where a credit services organization assists a buyer in obtaining credit from a third-party lender in exchange for a fee, either by guaranteeing repayment in full or procuring a guarantee from another party.

Requires credit services organizations that contract to provide or procure a guaranty to file a registration statement with the Secretary of State before conducting business in Arkansas, including the organization's name, main address, and information on any person owning or controlling 10% or more of the organization.

Prohibits credit services organizations from transferring payments for credit services to third-party lenders, disbursing payments to cover the lender's overhead expenses, or funding loans provided as a guaranty.

Requires credit services organizations to file a registration statement before advertising services, including guaranties, and prohibits organizations from providing or procuring guaranties that cover less than the total amount owed by the buyer to the third-party lender.