Kissimmee, FL asked in Contracts for Florida

Q: I purchased a puppy in July. I financed part of the cost with American Financial at 169.88%. Is this legal?

The loan is over 4 years. The amount financed was just under $3,500. The actual name of the company is American First Finance out of Dallas, Texas.

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1 Lawyer Answer
Charles M.  Baron
Charles M. Baron
Answered
  • Hollywood, FL
  • Licensed in Florida

A: If the APR (annual percentage rate) is 169.88%, that would be illegal, but I am guessing that the 169.88% figure you gave is not the APR. Do you mean the total you would pay in principal and interest ends up being 169.88% of $3,500? If so, the APR would be slightly under 29%. You can calculate that using an on-line APR calculator, such as www.calculator.net. In any event. under the Truth in Lending Act, a lender must generally disclose to you the APR and other info so that you can understand the interest to be paid and how it's calculated. If you did not see that info, ask the lender. Now, is a nearly 29% APR permitted by law for your type of loan? It might be. I personally would not be able to offer any further guidance; perhaps another attorney viewing your inquiry would be able to. Otherwise, consult an attorney handling consumer credit issues, a CPA, or the Fla. Attorney General's office.

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