HOUSE OF REPRESENTATIVES	H.B. NO.	262
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

relating to interest.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 478, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§478- Loans for vehicles. (a) Notwithstanding any other law to the contrary, consumers purchasing a vehicle for the first time are protected from usury according to the limitations imposed under this section.

(b) No consumer purchasing a vehicle for the first time shall be subject to an interest rate above two per cent a year, provided that:

(1) Consumers purchasing a vehicle for the first time with a credit score of six hundred or more shall be eligible for a zero per cent interest rate loan; and

(2) Consumers purchasing a vehicle for the first time with a credit score below six hundred shall not be subject to an interest rate above two per cent a year.

(c) Consumers purchasing a vehicle for the first time at a greater rate of interest than permitted in this section are entitled to the redress available for usury outlined in this chapter."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on January 1, 2026.

INTRODUCED BY:

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Report Title:

Interest Rate; Usury; Vehicle; Loan; Consumer Protection

Description:

Protects consumers, who are purchasing their first vehicle, from predatory interest rates by setting a maximum interest rate of two per cent for consumers with a credit score below six hundred and zero per cent for consumers with a credit score of six hundred or more. Authorizes existing avenues of redress from usury under chapter 478 to apply to this Act.

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