Redwood City, CA asked in Consumer Law for California

Q: Is an APR of 99% legal for a loan?

I took out a loan for $6,300 in June of 2019 and have paid back over $17,000. I still have a principal balance of over $6,800. The APR is listed as 99% and I was wondering if this is legal in California or are there consumer protections?

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1 Lawyer Answer
Scott Richard Kaufman
Scott Richard Kaufman
Answered
  • Consumer Law Lawyer
  • Los Altos, CA
  • Licensed in California

A: So, here is where you can START your research. There WAS a time where the only protections were for loans (in CA) that were UNDER $2,500.00. It's why a lot of places like "We Lend" or "You Owe" or similar sounding names "trust you!" Because, once you borrow more than $2,500.00 they could charge you whatever you agree to pay. Don't forget, it is presumed you READ and you UNDERSTOOD your contract and related interest rate.

There has been a move afoot in CA and I think in Congress in DC, to CAP interest rates at 36% ?

I am NOT sure if this has passed in either place? I do think Congress may have passed such a law as it relates to Veterans? Anyhow, this tips should help you find out more on the interwebz...

Good luck with it.

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