ORANJESTAD, Aruba — Aruba Consumer Credit Costs are now subject to new legal limits after Article 5 of the island’s Consumer Credit Regulation Ordinance took effect on August 1, 2026, giving borrowers additional protection against excessive loan-related charges.
The Centrale Bank van Aruba, or CBA, reminded consumers of the changes in a notice issued August 28.
The new limits apply to consumer loans entered into from August 1 as well as existing consumer loans that are refinanced, restructured or extended after that date.
The rules cover several important costs, including interest and related fees, late-payment charges, early repayment fees and extrajudicial collection expenses.
Aruba Consumer Credit Costs Limited to 25%
Under the new regulations, Aruba Consumer Credit Costs involving interest and related loan charges cannot exceed 25% per year.
The calculation includes total interest costs together with related charges, such as fees associated with arranging or closing the credit.
Those costs are calculated as a percentage of the total amount of the consumer loan.
The regulation represents a significant change for Aruba because the government previously did not have a comparable legal maximum applying to consumer-credit costs.
The government has described the measure as an important step toward strengthening consumer protection while continuing to allow residents access to financing.
Late Payment Charges Capped at 2%
Consumers who fall behind on loan payments also receive protection under the new rules.
A lender cannot charge more than 2% per month as a late-payment charge.
Importantly, the 2% is calculated on the amount that is overdue rather than automatically applying to the entire original loan balance.
This provision is intended to prevent overdue-payment costs from increasing beyond the maximum established by law.
Early Repayment Fees Limited to 7.5%
Borrowers who decide to pay off all or part of a consumer loan ahead of schedule also face a maximum charge.
The lender may charge no more than 7.5% of the amount being repaid early.
For example, the rule applies whether a consumer decides to settle the complete remaining loan ahead of schedule or makes only a partial additional repayment.
The provision gives borrowers clearer information about the maximum financial consequence of paying off debt earlier than originally agreed.
Collection Costs Also Restricted
The regulations also establish limits when an unpaid account is transferred for extrajudicial collection.
Collection expenses may not exceed the amount permitted under the liquidation tariff used by the Common Court of Justice of Aruba, Curaçao, Sint Maarten, Bonaire, Sint Eustatius and Saba.
The applicable amount depends on the principal value of the claim.
These costs can include expenses associated with reminders, formal notices and administration.
The Central Bank is encouraging consumers to familiarize themselves with these limits when entering into new credit agreements.
Existing Loans Can Also Be Affected
The new Aruba Consumer Credit Costs limits do not automatically rewrite every loan agreement that existed before August 1.
However, they do apply when an existing consumer loan is refinanced, restructured or rolled over after the effective date.
Consumers considering changes to an existing loan should therefore review the new terms carefully and verify that applicable charges remain within the legal maximums.
Full CBA Supervision Expected in 2027
Article 5 represents only part of the broader Consumer Credit Regulation Ordinance.
Other elements of the legislation are expected to be implemented in phases, including broader information requirements for lenders, responsible-lending standards, a credit registry and additional compliance mechanisms.
The CBA says it is expected to take responsibility for supervising compliance with the full ordinance once all of its provisions enter into force.
Full implementation is currently anticipated for January 1, 2027.
For now, the August 1 limits provide consumers with immediate rules governing some of the most significant costs associated with borrowing.
The Central Bank is advising Aruba residents to pay close attention to those maximum charges before signing, refinancing or restructuring a consumer-credit agreement.
