Legal Question in Business Law in Illinois

highest legal interest rate allowed

I went to a company called "Illinois Title Loans" and handed over the title to my car for a loan of $450.00. That was over a year ago. I am still paying on that loan. I pay $130.00 a month. That is the lowest amount that I can pay. And that is just the interest that I have to pay to keep them from reposessing my vehicle. The interest rate is 300%. I was wondering if it is legal for them to charge that high of an interest rate. I have paid back &1800.00 on a $450.00 loan! I have heard that there is a law that states you cannot charge that high of an interest rate. Is that true or can they charge me that much in interest. And what, if anythink can I do. I cannot afford to give them $600.00 at one time to regain the tite to my car!


Asked on 7/13/99, 1:39 pm

1 Answer from Attorneys
Patrick Tracy Patrick J. Tracy, Esq, P.E.,

Re: highest legal interest rate allowed

The interest rate that they are charging is totally outrageous. You need to report this to the office of the Attorney General to have them investigate this company. You probabvly need to find a local credit union that will allow you to borrow the 600.00 to redeem your car.

There's not really much that you can do at this point. You should have read the language of the note before you signed it. Sorry I can't be of much further help.

Pat Tracy

Read more
Answered on 7/16/99, 2:30 pm


Related Questions & Answers

More Business Law questions and answers in Illinois