Hawaii <36% APR Bill Passed Today

Published: Fri, 06/18/21

,

This just out. <36% APR Cap Implemented in Hawaii!

The 36% APR cap continues to constrain our business. Who is REALLY funding these legislative bills? The "big boys" like CURO, Avant, Enova, banks, credit unions... They want to crush us!

PS: No longer interested? No HARD FEELINGS! Your time is valuable. Click to say GOODBYE :-)

<36% APR Cap Implemented in Hawaii!

Lenders with a high WACC [High weighted cost of capital] look for collaborations with Sovereign, federally recognized Native American Indian tribes. [ASK ME for intros!]

Hawaii becomes the latest state to put new restrictions on payday loan rates and repayment methods.

These small-dollar consumer loans, which can amount to a maximum of $1,500 under the new law, will be repayable over the course of two to 12 months, depending on the size of the loan, as opposed to the traditional two weeks.
Annual interest rates are capped at 36% under the new Hawaii law, but lenders are allowed to charge a monthly fee of up to $35 depending on the size of the loan. However, total fees cannot exceed more than half the original amount borrowed.

Prior to the new legislation, payday lenders in Hawaii charged annual percentage rates of up to 460%. That means to borrow $500 over four months, a customer would pay $700 in finance charges. Now, customers will pay $158 in finance charges.