ORANJESTAD (AAN) – Aruba Caps Consumer Credit Interest at 25% beginning August 1, 2026, introducing the island’s first legal limit on consumer credit interest rates as part of new measures to strengthen consumer protection.
The regulation takes effect through Article 5 of the Consumer Credit Regulation Ordinance (Landsverordening Regeling Consumentenkrediet – LCK) and establishes a maximum interest rate and cost of 25% on consumer credit issued from August 1, 2026 onward.
The new limit applies to various forms of consumer credit, including cash loans, financing for goods, and pawn loans, marking the first time Aruba has imposed a legal ceiling on the total cost of consumer borrowing.
Before the introduction of this regulation, Aruba had no statutory limit on consumer credit costs. The government said the measure represents a major milestone in a reform process that began during the previous cabinet, when Geoffrey Wever served as Minister of Economic Affairs.
During that period, preparatory work, research, and consultations with stakeholders were carried out to lay the foundation for the legislation. The government said those efforts have now resulted in the implementation of the first phase of the LCK.
According to Minister of Finance, Economic Affairs and the Primary Sector Geoffrey Wever, the 25% cap is intended to provide consumers with greater protection while maintaining access to credit.
“By introducing the 25% maximum, we are establishing a clear limit to protect consumers. This is a historic step in strengthening consumer rights in Aruba. It is also an important milestone in a process we initiated during the previous cabinet, which is now finally coming into force for the benefit of all consumers,” Wever said.
The ministerial regulation issued under Article 5 also establishes rules governing late payment charges, early loan repayment, and extrajudicial debt collection costs.
Wever emphasized that the government sought to strike a balance between protecting consumers and ensuring that families and individuals continue to have access to financing.
“Many families and individuals depend on access to credit. We do not want to restrict financing, but we do want to prevent consumers from paying excessive costs. The 25% maximum creates that balance between protection and access,” he said.
The government clarified that only Article 5 of the Consumer Credit Regulation Ordinance will take effect on August 1. Other provisions of the legislation will be introduced in later phases.
Future implementation will include expanded disclosure requirements for credit providers, responsible lending standards, the creation of a national credit registry, and enhanced supervisory and enforcement mechanisms.
The government also noted that, for now, the 25% cap primarily has a civil law effect, allowing consumers to invoke the legal limit before a court if a credit provider exceeds the maximum permitted charges.
As additional provisions of the LCK are implemented, the relevant authorities will gain greater powers to supervise compliance and take enforcement action when necessary.
The government said the new regulation provides immediate consumer protection while promoting a fair and competitive credit market. Minister Geoffrey Wever also thanked the Central Bank of Aruba and the Department of Legislation and Legal Affairs for their contributions to developing the new framework.
