Posted: Thu Apr 15, 2004 12:44 am Post subject: Usury - Interest rate charged above the legal limit
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
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
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 sucess
frank 14 Guest
Posted: Tue Mar 03, 2009 7:58 pm Post subject: credit card interest
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:
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.
Sam
