Usury - Interest rate charged above the legal limit

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Icon Mini Profile Sam
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Post Posted: Thu Apr 15, 2004 12:44 am    Post subject: Usury - Interest rate charged above the legal limit
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Usury is an interest rate which is charged over the limit established by law. The usury limit which is stated can be charged by one person or corporation to another.

For example, suppose the legal rate established by law is 3%, and John, a lender, charged Carole 5% interest rate. This 5% interest rate is known as 'usury'.

Recently, states have enacted a law that limits the usury to current market rates but earlier what prevailed was the flat rate. Sometimes interest is directly imposed on the amount charged for goods and services. In some cases, sellers charge a certain price for cash sale, and a higher price for credit sale on similar goods.

However the transaction laws vary from state to state. There are states which follow a "legal interest rate". In such states the legal rate is applied if any contractual obligation provides for interest without a specific term, or "interest at the highest legal rate". But there are other states that use a "judgment rate" which is normally associated with final judgments. In states having no usury, there may still be a limit imposed by the federal government.

A state-wise list of the usury rates, legal rates and judgment rate are given below.

StateLegal RateUsury LimitJudgment Rate
jean ricardo

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Post Posted: Sun Nov 09, 2008 10:52 pm    Post subject: a dealer charged me 28% interest rate
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a dealer at orlando florida charged me 28% interest rate
Icon Mini Profile jerry
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Post Posted: Mon Nov 10, 2008 3:01 am    Post subject:
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Hi jean ricardo!

As far as I know, the usury rates have not changed in Florida. Thus, I feel the dealer is charging you higher rates. You can ask your dealer to give you a details of the charges that he is charging you. This will help you to know why he is charging so much higher than the normal rates.

Thanks,

Jerry
Kiara

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Post Posted: Tue Dec 02, 2008 4:31 pm    Post subject: credit card interest rate laws
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Our credit card company (based in Utah) just raised our rate from 15.99% to 37.18%!!! We have never payed late and have always paid over the minimum. This rate is applied to purchases....is this legal???
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Post Posted: Wed Dec 03, 2008 12:02 am    Post subject:
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Welcome Kiara,

A query similar to yours is answered in the given link:
http://www.mortgagefit.com/credit/increase-interestrate.html#68485

Check out the link and I think it will help you.

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frank 14

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Post Posted: Tue Mar 03, 2009 7:58 pm    Post subject: credit card interest
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what the highest interest that can be charged on a credit card in the state of michigan
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Post Posted: Tue Mar 03, 2009 11:21 pm    Post subject:
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Well, I guess the credit card companies will help you in a better way regarding this query. You can check out with the credit card companies and get to know the rates that they are offering at present.
JAYD

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Post Posted: Mon Jan 24, 2011 10:44 pm    Post subject: CALIFORNIA COMMERCIAL INTEREST RATE
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Can a lender charge 10.5% interest in 1/2009 for a commercial real estate loan without having the note drafted by a realtor-broker?
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Post Posted: Tue Jan 25, 2011 10:55 pm    Post subject:
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Unless a proper note is drafted, it is advisable to not agree to any terms and conditions put forward by the lender.
mariaisabelgiro

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Post Posted: Mon Jan 31, 2011 9:10 am    Post subject: car loan florida
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wht is the maximum intererst rate they can charge meon a car loan for $11,000 in Florida
Icon Mini Profile adonis
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Post Posted: Wed Feb 02, 2011 12:33 am    Post subject:
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As far as I know, in Florida, the legal rate of interest is 12%. The general usury limit is 18%. However, on loans above $500,000, the maximum rate is 25%.
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kelly1

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Post Posted: Wed Feb 16, 2011 6:20 pm    Post subject: car loan
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what is the highest interest rate that can be charged on a car loan in illinois
Icon Mini Profile smithsussane
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Post Posted: Wed Feb 16, 2011 11:59 pm    Post subject:
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Hi kelly!

Welcome to forums!

As far as I know, in Illinois, the legal rate of interest is 5% and the general usury limit is 9%. The judgment rate is 9%.

Feel free to ask if you've further queries.

Sussane
HG Canizares

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Post Posted: Wed Sep 07, 2011 8:55 pm    Post subject: Usurious rates in FL
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A friend of mine recently purchased a vehicle and financed at a rate of %23. I thought that seemed exorbitant. Is there some sort of loophole in FL law that would allow finance co's to charge a rate higher than is spelled out in FS 520.08 (1)(d)?
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Post Posted: Thu Sep 08, 2011 11:25 pm    Post subject:
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Hi HG Canizares!

Welcome to forums!

It is really an exorbitant rate. Well... I'm not sure about FS 520.08 (1)(d) but I will suggest your friend to contact an attorney and take his opinion in this matter. The attorney will let your friend know whether or not he/she can take any legal actions against the lender.

Sussane
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