Paying 135% Interest? Judges Think You May Be Loan Shark Victim
ByCalifornia’s top court said that consumer loans charging as much as 135 percent a year may be abusive, in a warning to lenders that target people with low credit scores who need cash quickly.
It isn’t easy “to pinpoint the precise threshold separating a merely burdensome interest rate from an unconscionable one,” the California Supreme Court said Monday in its ruling. In the absence of any interest cap in a state law regulating consumer loans of more than $2,500, transactions that are “unreasonably and unexpectedly harsh” shouldn’t be condoned, the seven-judge panel concluded.
“Courts have a responsibility to guard against consumer loan provisions with unduly oppressive terms,” the court said…
Paying 135% Interest? Judges Think You May Be Loan Shark Victim
