Could You Be Entitled to Refunds of Loan Moneys Paid?
Taking on a loan means taking on risk, but there’s a difference between risk and pure greed when it comes to lender behavior toward borrowers.
Because predatory lenders – and traditional financial institutions alike – seek to take advantage of consumers, laws have been put in place to help curb high interest rates and better protect borrowers. But just because laws are in place doesn’t mean the regulations are followed.
What are Usury Laws?
Usury laws are regulations that stipulate the legal limits lenders can charge when it comes to interest rates and, in some states, fees. While there are federal laws in place, usury laws are primarily regulated at the state level; however, there are exceptions that can complicate things, such as understanding which laws are applied when it comes to national banks.
In Florida, the maximum interest rate for loans up to $500,000 is 18 percent. For loans greater than $500,000, the maximum interest rate that can be charged is 25 percent, per Florida Statute 687.02. Loans with interest rates above this legal limit are usurious and against the law.
What to Do if You Suspect Usury
If you’ve been making regular loan payments but feel stuck in a cycle of paying high interest and hardly any of the loan balance, it’s time to talk to us at Jacobs Legal.
Usury is a criminal offense and with the right representation, it is possible to make the interest uncollectable, or in some cases, completely void the entire agreement. That means you, as the borrower, could be entitled to a full refund of moneys paid.
Lenders are in it for themselves and many will do what they can to get around the law. At Jacobs Legal, we refuse to let this happen. For more information on Florida’s Usury Laws and to learn about your rights as a consumer, get in touch with us at Jacobs Legal today.