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On May 12, 2026, Oklahoma lawmakers passed a new bill aimed at protecting consumers from predatory lending practices in the state. The legislation, known as the Consumer Protection Act of 2026, includes provisions that will regulate the payday loan industry, limit interest rates on certain types of loans, and provide greater transparency for borrowers.One of the key provisions of the new law is a cap on interest rates for payday loans, which have long been criticized for their exorbitant fees and high interest rates. Under the new legislation, lenders will be limited to charging no more than 36% APR on these types of loans, a significant reduction from the previous average rate of 400% APR. This measure aims to prevent borrowers from falling into a cycle of debt and financial hardship due to the high cost of borrowing.Additionally, the Consumer Protection Act of 2026 requires lenders to provide clear and concise disclosures to borrowers, including information about the total cost of the loan, the annual percentage rate (APR), and any fees or penalties that may be incurred. This increased transparency is designed to empower consumers to make more informed decisions about their financial options and avoid falling victim to deceptive practices.Furthermore, the new law establishes a licensing and regulatory framework for lenders operating in Oklahoma, including requirements for background checks, financial disclosures, and compliance with state and federal consumer protection laws. This regulatory oversight aims to weed out bad actors in the industry and ensure that lenders are operating ethically and responsibly.Overall, the Consumer Protection Act of 2026 represents a significant step forward in the fight against predatory lending practices in Oklahoma. By implementing stricter regulations, promoting transparency, and empowering consumers with the information they need to make sound financial decisions, lawmakers are working to create a more fair and equitable lending environment for all residents of the state.