Arkansas Bill Set to Eliminate Interest Rate Limit; Will it Affect Payday Loans?
By J.J. CameronPayday Loan Writer
Payday loans are not the most popular resources in Arkansas.
A handful of finance companies in the state are pushing for passage of a federal provision to eliminate the state's constitutional limit on interest rates charged for various loans.
The provision would allow automobile dealers, retailers and other non-bank companies, except payday loan lenders, to charge the same interest rates that banks in Arkansas can charge.The federal Regulatory Relief Bill that includes the Arkansas provision has passed the House, but was not included in a version that went to the Senate Banking Committee.
Dennis Jungmeyer, president of the Arkansas Automobile Dealers Association, and others have tried to get the provision passed for several years. It would not include payday loans, however, as many actually feel there should be more restrictions placed on these cash advances.
