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.
State
Legal Rate
Usury Limit
Judgment Rate
Alabama
6%
8%
12%
Alaska
10.5%
More than 5% above the Federal Reserve interest rate on the day the loan was made.
-
Arizona
10%
-
-
Arkansas
6%
For Non-Consumer the limit is 5% above the Federal Reserve's interest rate and for consumers is 17%.
10%
California
10%
For Non-Consumer the limit is 5% above the Federal Reserve Bank of San-Fransico rate.
-
Colorado
8%
45%
-
Connecticut
8%
12%
-
Delaware
5% over the Federal Reserve rate.
-
-
District of Columbia
6%
In excess of 24%
-
Florida
12%
18% On loan amount above $ 2,50,000 - 25%
-
Georgia
7%
On loan amount below $ 3,000 - 16% On loan amount above $ 3,000 - 5%
-
Hawaii
10%
12%
-
Idaho
12%
-
5% above the US Treasury security rate.
Illinois
5%
9%
9%
Indiana
10%
-
10%
10%
12%
-
Kansas
10%
15%
4% above Federal discount rate.
Kentuchy
8%
4% more than Federal Reserve rate or 19% whichever is less On loan above $ 15,000 - No limit
12%
Lousiana
Not exceed 14% nor less than 7%
12 % for individual and no limit for corporations.
-
Maine
5%
-
Below $30,000 - 15% or 52 week average discount rate for T-Bill, plus 4%.
Maryland
6%
24%
10%
Massachusetts
6%
20%
12%
Michigan
5%
7%
5% above the 5 year T-Note rate.
Minnesota
6%
8%
-
Mississipi
9%
More than 10% or more than 5% above the Federal Reserve rate
9%
Missouri
9%
-
9%
Montana
10%
6%
10%
Nebraska
6%
16%
1% above a bond yield equivalent to T-bill.
Nevada
12%
No limit
-
New Hampshire
10%
No limit
-
New Jersey
6%
30% for individual and 50% for corporation
-
New Mexico
15%
-
Fixed by the court
New York
9%
16%
-
North Carolina
8%
8%
-
North Dakorta
16%
5 1/2% above 6 months treasury bill rate
Contract rate or 12%, whichever is less.
Oklahoma
6%
Consumer loan - Not exceed 10% Non-consumer loan - Not exceed 45%
T-Bill rate plus 4%
Oregon
9%
Loan above $ 50,000 - 12 % or 5% above the discount rate for commercial paper.
9% or contract rate, whichever is higher.
Pennsylvania
6%
25%
6%
Puerto Rico
6%
-
6%
Rhode Island
12%
21% or Interest rate charged for T-Bill plus 9%
21%
South Carolina
8.75%
-
14%
South Dakota
15%
No Limit
12%
Tennessee
10%
24%
10%
Texas
6%
-
18% or contract rate, whichever is less.
Utah
10%
12%
Vermont
12%
12%
12%
Virgina
8%
No Limit
8%
Washington
12%
12%
12%
West Virgina
6%
Based on Market rate
-
Wisconsin
5%
No limit
12%
Wyoming
10%
-
10%
jean ricardo Guest
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
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 Guest
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???
Check out the link and I think it will help you. _________________ Procrastination is the enemy of your financial success
frank 14 Guest
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
Guest
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 Guest
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?
Guest
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 Guest
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
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%. _________________ Procrastination is the enemy of your financial success
kelly1 Guest
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
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 Guest
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)?
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.
Mortgage Forums 
Sam
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