Southwest Arkansas Communications, Inc. v. Arrington

Robert H. Dudley, Justice.

The appellant asks us to overrule our case interpreting the usury amendment to the Constitution of Arkansas. We decline the invitation.

The appellant sold the appellee a television satellite dish on January 27,1987, and a television and videocassette recorder on February 17,1987. The purchases were to be paid for through the use of a revolving charge agreement with an interest rate of 12.5 % per annum. At the time the federal reserve discount rate was 5.5 %; thus, the interest rate was more than 5 % above the federal reserve discount rate. After making two payments…