SB 1005 Summary

• Amends Arizona Revised Statutes section 44-291 regarding interest rates and finance charges on secondary motor vehicle finance transactions (auto title loans).

• Changes maximum finance rate for secondary motor vehicle loans in the highest principal amount category (more than $5,000) from 10 percent monthly to 36 percent annually.

• Voids secondary motor vehicle finance transactions if licensees charge amounts exceeding permitted finance charges and fees, with no right to collect principal or fees on voided transactions.

• Requires sellers to conspicuously disclose the annual secondary motor vehicle finance rate in the contract.

• Applies federal disclosure requirements to secondary motor vehicle finance transactions that comply with federal law, exempting them from certain state disclosure rules.