Is there a law against loan company that expects to receive a 115% payment?

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Is there a law against loan company that expects to receive a 115% payment?

I borrowed $390; now the loan company wants a $850 return? Do I have legal rights?

Asked on February 13, 2012 under General Practice, Florida

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Most if not all states in this country have laws regulating the legal rate of interest that one may charge for the forbearance of money (loan) called usury laws. From what you have written, the interest rate to get the ultimate return seems to be in violation of state law.

If so, most states hold that the loan is an interest free loan as a result. Your state's Constitutional Code should set the rate of legal interest. I suggest that you consult with an attorney who practices consumer law if you have further questions about your matter.


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