How much can a company charge you for in interest?
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How much can a company charge you for in interest?
I bought a machine and financed it. I just found out they have been charging me with 33%. I spoke to a bank personal and they couldn’t believe it. I did the loan for $92,000 and a year later I owe more then what I borrowed. The company that I bought my machine through is the one that said just sign here and here and I did. I didn’t have time to read it over and had absolutely no idea the percentage rate was that high or else I would have never done it.
Please help.
Asked on April 24, 2018 under Business Law, Missouri
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Many states limit maximum interest rates: your state (MO) does not, except for a very limited class of small loans, which a $92,000 business or commercial loan would not fall under. Unfortunately, you therefore are not protected from excessive interest rates, and they can charge you 33%.
You are held to what you signed: you *could* have read it over and refused to sign a loan or agreement for that much. (And if they tried to rush you, you could have simply refused to sign until you read it: they had no power to make you sign.) The law presumes that you read, understood, and agreed to what you signed and holds you to it.
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