SB2843 Summary

• Caps annual percentage rate (APR) for title-secured loans at 36%, calculated using the military APR method under federal regulations.

• Establishes maximum loan terms based on amount financed: 12 months for $0-$1,000, 18 months for $1,000.01-$2,000, 24 months for $2,000.01-$3,000, and 30 months for $3,000.01-$4,000.

• Prohibits lenders from charging any finance charges, interest, fees, or other charges after a borrower defaults on a title-secured loan.

• Allows refinancing of title-secured loans only after the original principal has been reduced by at least 60%, with new loan principal not exceeding the outstanding balance.

• Preserves borrower rights to collect surplus funds from the sale of the motor vehicle securing the loan under the Uniform Commercial Code.