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There is no federal regulation on the maximum interest rate that your issuer can charge you, though each state has its own approach to limiting interest rates. State usury laws often dictate the highest interest rate that can be charged on loans, but these often don't apply to credit card loans.
Usury is the act of lending money at an interest rate that is considered unreasonably high or that is higher than the rate permitted by law.
Arkansas Interest Rate & Usury Laws The maximum lawful rate of interest on loans or contracts not described in Sections 1 and 2 shall not exceed seventeen percent (17%) per annum.
The rate of interest for all consumer loans and credit sales is capped at 17 percent per annum. Any rates of interest greater than 17 percent will be void as to the principal and interest. Rate of interest shall be six percent (6%) per annum if a particular contract has not agreed upon a rate of interest.
Industrial revenue bonds (IRBs), commonly known as ?Act 9 Bonds? in Arkansas, provide eligible existing companies with competitive financing options for property, plant and equipment expenses. Under Arkansas Act 9 of 1960, cities and counties are authorized to issue IRBs to benefit private companies.
Overview of Arkansas Interest Rate Limits Arkansas's legal limits on interest rates is encoded in the state constitution, which says both consumer and nonconsumer rates may not be more than 5 percent above the Federal Reserve discount rate (maximum 17 percent for consumer loans).