Legal Question in Credit and Debt Law in California

interest rate

i borrowed $5000, but must repay $25,000. is this legal, and what can i do to reduce the pay back amount.


Asked on 10/19/04, 6:18 pm

2 Answers from Attorneys
Larry Rothman Larry Rothman & Associates

Re: interest rate

Unless we review your documents, from your question, it appears that the agreement is subject to usuary law. We will have to review all documents that you have in order to assist you. Normally, the most interest charged in California on consumer loans is 10% unless an exemption applies.

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Answered on 10/19/04, 7:03 pm
Ken Koenen Koenen & Tokunaga, P.C.

Re: interest rate

There are some exemptions to the usury law, such as seller financing, etc. Otherwise the legal rate is 10% per annum.

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Answered on 10/19/04, 7:15 pm


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