Opinion No.

The Honorable Bobby G. Newman State Representative P.O. Box 52 Smackover, Arkansas 71762-0052

Dear Representative Newman:

This is in response to your request for an opinion concerning the assessment of late charges on overdue club membership fees. Your questions involve Arkansas usury law. Specifically, you have outlined an example of a club billing practice and pose two questions regarding its legality. The example you pose is as follows:

If the monthly dues for club membership is [sic] $100, this amount is billed on the first of the month and if not paid by the twentieth of the month, a late…