Legal Question in Consumer Law in Illinois

I recently tried trading my car in to get a new one and discovered that the dealership we used 5 years ago financed the car at 23% interest. Is that legal? I thought there was a cap on how high the interest rate could be set. I only remember the finance guy asking my now ex-husband and I if we could afford $496 per month. The dealership I went to recently told me that I was way upside down and that when I was done paying the car, I would have paid $42,000. It's a Grand Am! Please advise.


Asked on 3/22/10, 12:47 pm

1 Answer from Attorneys
Jonathan Shimberg Shimberg and Crohn, P.C.

There is no limit on how much interest can be charged. You are supposed to read before you sign. You received papers showing the interest rate. If you did not, the deal is illegal,

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Answered on 3/28/10, 6:33 am


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