HB321 Alabama 2017 Session

Summary

Primary Sponsor

Bob FincherRepresentative

Republican

Session

Regular Session 2017

Title

Consumer loans, lines of credit, financial products, interest rate, capped, const. amend.

Summary

HB321 would add a constitutional cap of 36% per year on the interest rates charged for consumer loans, lines of credit, and other financial products in Alabama.

What This Bill Does

If passed, the amendment would set 36% per annum as the maximum interest rate for consumer loans and related financial products, using the Regulation Z definition. The Legislature would be prohibited from authorizing higher rates by any general or local law. The measure would require voter approval in an election before taking effect.

Who It Affects

• Borrowers in Alabama would be protected from interest rates higher than 36% per year on consumer loans, lines of credit, and similar products.
• Lenders operating in Alabama would be limited to charging up to 36% per year and may need to adjust their loan offerings and practices to comply.

Key Provisions

• Maximum interest rate for consumer loans, lines of credit, and other financial products shall be 36 percent per annum, defined by Regulation Z of the Truth in Lending Act.
• The Legislature may not authorize any higher rate by general or local law; the amendment must be approved by voters in a statewide election.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments