Under this Statute the maximum rate is 21%. Is that the maximum APR or the maximum simple rate that can be charged?

We presented a similar question to the Tennessee Bankers Association in June 2015 and their answer was "The Credit Card State Bank Act (TCA 45-2-1901 et seq.) permits a basic interest rate of up to 21% plus reasonable fees that are permitted in the contract."

Hope this helps.

Thanks !

This was posted by TBA on April 24, 2017. Anyone know if Governor Haslam has signed?

Bank Interest Rate Increase Approved by General Assembly
Last Monday the House followed the actions of the Senate in approving TBA's legislation that increases the maximum permissible interest rate under the Credit Card State Bank Act, Tennessee's preferred bank lending statute, from 21 percent to 30 percent. Effective upon signature of the Governor, the measure sponsored by Sen. Jim Tracy (R-Shelbyville) and Rep. Patsy Hazlewood (R-Signal Mountain) was approved by a Senate vote of 22-6 and a House vote of 73-12.

Yes.

http://publications.tnsosfiles.com/acts/110/pub/pc0225.pdf

Thanks.