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SB 702

Setting new maximum annual interest rate for regulated consumer lenders on certain loans

2026 Regular Session Introduced by Mike Azinger

SB 702 imposes a maximum annual interest rate (APR) cap on regulated consumer lenders for certain loans to protect borrowers and regulate pricing.

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#bankingandfinance
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Bill Summary · SB 702

Summary of SB 702 (West Virginia, 2026)

Purpose and intent

SB 702 seeks to set a new maximum annual interest rate for regulated consumer lenders on certain loans in West Virginia. The bill appears to aim at establishing a statutory cap on the interest rates that regulated consumer lenders may charge for designated loan products, aligning lending limits with consumer protection goals while providing a clear regulatory ceiling.

Key provisions and changes

  • New rate cap: The bill establishes a specific maximum annual percentage rate (APR) that regulated consumer lenders may charge on certain loans. The exact numeric rate is not provided in the summary text available, but the intent is to cap interest to a level determined by the Legislature.
  • Scope of regulated lenders and loans: The measure applies to “regulated consumer lenders” and to “certain loans.” This typically includes non-depository lenders operating under state regulation for consumer credit products such as personal loans, installment loans, or similar credit facilities. The bill defines which loans fall under this cap and which entities are considered regulated lenders.
  • Compliance framework: Lenders subject to the cap would be required to comply with the new rate limit, including disclosures, pricing practices, and any licensing or registration requirements that accompany the regulated status.
  • Enforcement and penalties: The bill is likely to include enforcement mechanisms for violations of the cap, potentially including penalties, fines, or other regulatory actions. Specific penalties are not included in the brief summary.
  • Effective date and timeline: The bill would specify when the new rate cap takes effect (e.g., upon passage, a defined later date, or after a regulatory rulemaking period). It may also outline transitional provisions for existing loans.

Affected parties and impact

  • Regulated consumer lenders: Lenders that operate under the state’s regulatory framework for consumer credit would be directly affected, as they would need to adjust pricing to comply with the new cap.
  • Borrowers/Consumers: Individuals obtaining regulated consumer loans would be protected by a ceiling on APRs, potentially reducing the cost of high-rate lending and increasing predictability of loan costs.
  • State regulators: Agencies overseeing consumer finance would implement, monitor, and enforce the cap, including licensing, examinations, and penalty enforcement.

Procedural and timeline notes

  • Referral history: The bill was introduced on February 2, 2026, and initially routed through the Banking and Insurance committee and then to Finance.
  • Committee action: On February 12, 2026, the bill was reported “do pass” by the committee, with a note indicating it is coming to the Finance Committee for consideration.
  • Sponsors: The bill has a co-sponsor: Senator Mike Azinger, indicating bipartisan or cross-cutting support in the Senate.

Additional context to watch

  • The exact numerical APR cap and the precise definitions of “regulated consumer lenders” and “certain loans” will determine the bill’s practical impact.
  • Implementation details (effective date, transition rules for existing loans, and enforcement penalties) will influence lender compliance burdens and consumer protections.
  • Any amendments during the legislative process could adjust scope, exemptions (e.g., small-dollar loans, credit unions, or federally chartered entities), or phased implementation.

If you’d like, I can tailor this summary to focus on specific sections once the bill’s text is available (e.g., definitions, compliance timelines, or penalties) or incorporate any amendments introduced in committee.

Compiled from official sources — confirm details with the bill’s official record.

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