Legal Question in Credit and Debt Law in California

20%interest rate

I borrowed money from this person and she charges me 20% interest on every hundred borrowed each month but nothing goes towards the loan so I need to know what are my rights if I cant pay her the interest rate for the month she theretens to sue me + she charges 2.00 a day late fees she is a lender


Asked on 6/28/07, 12:38 pm

2 Answers from Attorneys
Alden Knisbacher knisbacher law offices

Re: 20%interest rate

Hmmm. . . sounds like that could be a usurious (illegal) interest rate.

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Answered on 6/28/07, 1:11 pm
Larry Rothman Larry Rothman & Associates

Re: 20%interest rate

If this is lendor is an individual, most likely she is subject to usury. Certain transactions and businesses are not subject to the 10 % limitation. As such, you may have an action against her for usury and she may not be able to recover any interest.

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Answered on 7/02/07, 1:27 pm


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