Tennesseans feeling the weight of financial obligations may find some relief as Commissioner of Financial Institutions Greg Gonzales shared the latest figures on interest rates in the state. In a move that reflects changes in the national economic climate, Gonzales has set the maximum effective formula interest rate at 11.50 percent per annum—information published today on the Tennessee Department of Financial Institutions' website.
This benchmark stems from a formula determining interest rates in the Volunteer State, capping them at 4 percent above the weekly average prime loan rate, which currently stands at 7.50 percent as declared by the Federal Reserve yesterday. According to a statement obtained by the Tennessee Department of Financial Institutions, Commissioner Gonzales confirmed that this rate will remain "in effect until the average prime loan rate as announced by the Federal Reserve Bank changes."
Tennessee's legislation, particularly Chapter 464 of the Public Acts of 1983, mandates that the commissioner make a public declaration of the formula rate of interest weekly. This stipulation helps ensure transparency and consistency in lenders' interest rates across the state, ostensibly providing consumers with insights to manage their finances better.
For further inquiry or details regarding the current rates, Alica Owen, Public Information Officer for the Tennessee Department of Financial Institutions, can be reached at (615) 289-4738, offering citizens a direct information line.
