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

UPDATED: Feb 13, 2012

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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