Florida Usury Law

What is the maximum legal interest rate for consumers in Florida?

I'm paying 19% interest on a used truck loan, is this legal in Florida?

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In Florida, the legal rate of interest is 12%. The general usury limit is 18%. On loans above $500,000 the maximum rate is 25%. See Florida CHAPTER 687: INTEREST AND USURY; LENDING PRACTICES to cite the law chapter and verse.

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Bill

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  • 35x35
    Feb, 2013
    Carol
    Does the Florida Usuary Law apply to a personal loan that is made between myself and a friend who puts 1% of his business up as collateral? Loan amount 25K, interest 20%. Just don't want to be in any violation.
    0 Votes

    • 35x35
      Feb, 2013
      Bill
      You ask a legal question about a Florida law that implies a yes or no answer. Based only on the facts you shared, which are incomplete about the entire set of circumstances here, you appear to be in violation of Florida law, cited in the original answer above. However, I hasten to add exceptions may apply to your situation. Your wisest course of action is to consult with a Florida lawyer (which I am not) who has experience in contracts, banking, or securities law.
      0 Votes

  • 35x35
    Jul, 2012
    Howard
    Discover sent me an "offer" today of 23.99% plus either $5 or 3% of the transaction (whichever is greater) for a cash advance... all this without a gun. Something wrong somewhere?
    0 Votes

    • 35x35
      Jul, 2012
      Bill
      No, nothing is wrong. First, if you have a rock-bottom credit score and no source of income, Discover probably has a disclaimer in your offer that it is contingent on your passing its credit approval tests. Second, if you have an excellent credit score, no debt, and verifiable income, Discover probably guesses it will make money if you accept the deal due to the eye-popping interest rate you mentioned.
      0 Votes

    • 35x35
      Dec, 2012
      steve
      How can you say nothing is wrong when the offer is at 23.99% and the law says you can't charge more than 18%? And between 25 and 45% it is a second degree misdemeanor? I am confused.
      0 Votes

    • 35x35
      Dec, 2012
      Bill
      Three reasons why credit card issuers are not subject to state usury laws:
      1. National banks are permitted to charge the highest interest rate allowed in the bank’s home state, regardless of the borrower’s state of residence (Marquette Nat. Bank of Minneapolis v. First of Omaha Service Corp. 439 U.S. 299 (1978)). Since 1978, this has meant credit card issuers located in states with no usury laws, such as Delaware and South Dakota, can use the lack of an interest rate cap in offers to customers in states with usury laws.
      2. The Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) allows all federally insured banks, which includes state-chartered banks, to charge out-of-state customers the highest interest rate permissible in the state where the bank is headquartered.
      3. Finally, Section 731 of the Gramm-Leach-Bliley Act, a 1999 federal law that loosened regulations on banks, effectively wiped out state usury laws that still stood in Alaska, Arkansas, and California.

      In other words, Florida and other state usury statutes no longer apply to banks.

      0 Votes

    • 35x35
      Dec, 2012
      Ken
      Are there exceptions to the usury laws in a commercial context?
      0 Votes

    • 35x35
      Dec, 2012
      Bill
      In some states, yes.
      0 Votes