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Usury - Interest rate charged above the legal limit

[b:4347a4ca8b]Usury[/b:4347a4ca8b] 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.

[b:4347a4ca8b]For example[/b:4347a4ca8b], 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
Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

a dealer at orlando florida charged me 28% interest rate

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:53 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what the highest interest that can be charged on a credit card in the state of michigan

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Unless a proper note is drafted, it is advisable to not agree to any terms and conditions put forward by the lender.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

wht is the maximum intererst rate they can charge meon a car loan for $11,000 in Florida

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what is the highest interest rate that can be charged on a car loan in illinois

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Is there a limit to the amount of interest a company can charge on a owner-finance loan in Texas.

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Linda!

Welcome to forums!

As far as I know, there is no limit to the amount of interest that can be charged in case of an owner finance loan. However, normally the owners charge interest rates as per the available market rates.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am paying 26.99% interest on a dental care loan that originated in the state of Hawaii. The legal rate in Hawaii for APR is 10%. I called the loan company and they claim they are doing nothing illegal and that I signed the agreement allowing them to do this to me. Who can I contact to rectify this situation? I'll never pay the debt off at that rate and it's absolutely ludicrous!! And illegal, am I right??

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Misti,

Your query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about55175.html

Please take a look at it. I hope it will help you.

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