If I borrowed $500 from a cash advance company about 15 months ago but never repaid it, can it now charge me $2500 to pay it back?

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If I borrowed $500 from a cash advance company about 15 months ago but never repaid it, can it now charge me $2500 to pay it back?

Is that legal to charge me that much interest?

Asked on October 2, 2012 under Bankruptcy Law, Ohio

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Under the laws of all states in this country there are certain laws pertaining to the rate of interest that one may charge another when a real estate broker is not involved. From what you have written, the $1,500 amount now ballooning to $1,500 in just 15 months smacks of an illegal interest charge under the laws of your state.


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