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?
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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