HB 2611 Summary

• Defines "motor vehicle title loan" as a nonpurchase cash loan up to $5,000 with a term not exceeding four years, secured by clear vehicle title.

• Requires persons lending money as motor vehicle title loans to be licensed as a sales finance company under Arizona law, unless exempt under existing consumer lender provisions.

• Caps annual interest rate at 36 percent for motor vehicle title loans, including all fees and charges, with equal periodic installment repayment requirements.

• Prohibits balloon payments, prepayment penalties, and other acceleration provisions except for borrower default, and prohibits additional security such as access to deposit accounts or prepaid debit cards.

• Makes motor vehicle title loans obtained in violation of licensing or rate requirements void and uncollectible, with violations constituting unlawful practices subject to attorney general enforcement.