AB 2558: Financial institutions: loans: interest rates.

The bill aims to regulate financial institutions by setting annual percentage rates for loans and deferred deposit transactions. It prohibits lenders from charging excessive interest rates on loans under $2,500, with rates capped at the rates set by federal laws and regulations as of January 1, 2026. The bill also limits the total amount charged for deferred deposit transactions to the same annual percentage rate, effectively capping fees at the rates set by federal laws and regulations. The bill expands the definition of a crime for violating these regulations, imposing a state-mandated local program. No reimbursement is required by the state for the costs of implementing this act.