Compliance Alerts

Compliance Alert

Tennessee - 5/22/2017

The following information is presented by the Carleton Compliance Department.  In order to keep our customers abreast of what is happening in the consumer credit and credit insurance industries, the following law changes have been compiled for your review.  Please check to see if any of the listed changes will impact your operations.

*The content of this alert is intended to convey general information only and not to provide legal advice or opinions. 

State Law Changes - Revision of Alert dated May 3, 2017

TENNESSEE - Industrial Loan Act

Governor Haslam signed SB 256 on April 24, 2017 increasing the maximum interest rate associated with the Industrial Loan Act.  The Bill amended Sec. 45-5-301 of the Tennessee Code Annotated and changed the maximum interest structure from a single 24% to a tiered two rate structure.  The law became effective as PC No. 164 on May 3, 2017.

The new maximum interest rate structure for loans where the total amount of the loan is $100 or more:

30% when the total amount of the loan is at least $100 but not more than $5,000
24% when the total amount of the loan exceeds $5,000

  • Loans where the total amount of loan is less than $100 continue to have a maximum rate of 7.5% discount with a maximum equivalent of 18% simple per annum
  • Open-end loans continue to have a maximum effective rate of 24% per annum.

SB 256 amended the interest portion of total charges associated with the Industrial Loan Act.  The 4% service charge and tiered maintenance fee remain intact.

The alternative interest rates in Sec. 45-5-403(b)(1) structured as an acquisition fee and tiered monthly account handling charge also remain intact.

Carleton Research, Compliance, and Customer Support  

Please contact Carleton Support for coordinating the implementation of this change within your CarletonCalcs module by emailing: or calling (800) 433-0090.
If you have any specific questions, please contact the Carleton Compliance Department directly by emailing: or calling (800) 433-0090.