AZ HB2585

Amends Arizona law to establish a maximum finance charge of 36 percent per year for secondary motor vehicle finance transactions, replacing the previous tiered rate structure based on loan amount.

Prohibits lenders from entering into secondary motor vehicle finance transactions for vehicles that are encumbered by a lien and bans additional security or guarantees as conditions for such transactions; violations render the transaction void.

Declares secondary motor vehicle finance transactions void if the lender charges, contracts for, or receives amounts exceeding permitted finance charges and fees, with the lender losing all rights to collect principal, finance charges, or fees.

Defines "finance charge" for secondary motor vehicle transactions to include all interest, charges for ancillary products sold in connection with the transaction, and other incidental credit extension charges.

Makes violations of secondary motor vehicle finance transaction requirements unlawful practices subject to enforcement and penalties under Arizona's consumer fraud law (section 44-1522).