Legal Question in Credit and Debt Law in Alabama

legal interest rates

What is the legal maximum rate of interest a loan company can charge?


Asked on 3/10/08, 2:22 pm

1 Answer from Attorneys
James Patterson Underwood & Reimer, P.C.

Re: legal interest rates

This is a complicated area of law. Generally, this falls under "usury" laws. Every state is different. However, any federally backed loan isexempt from the particular states usury law. In Alabama, the legal rate of interest is 6%; the general usury limit is

8%. The judgment rate is 12%.

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Answered on 3/13/08, 10:57 am


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