Legal Question in Credit and Debt Law in California

What is the maximum legal interest rate on installment loans in california


Asked on 1/17/12, 2:23 pm

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Whatever people are dumb enough to agree to, for example the payday loan companies that charge 798%. Or is it 897%. There is a California "usury" law but it is toothless. The banking and payday loan lobby bribed Sacramento into gutting that law many years ago. And a lender located out of state, say in Nevada or South Dakota is free to lend at whatever sky's-the-limit interest rate their state allows them to charge.

See http://ag.ca.gov/consumers/general/usury.php

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Answered on 1/17/12, 2:33 pm
Scott Jordan Jordan Law Office

California's legal interest rate is 10% APR. However, the legally allowable interest rate is whatever the lender can negotiate.

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Answered on 1/17/12, 2:40 pm


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