Legal Interest Rate in Florida

Florida`s usury law is found in Fla. Stat. Ch. 687. In Florida, the maximum interest rate is 18% for loans under $500,000. Florida Stat. § 687.03. For loans over $500,000, the maximum statutory interest rate is 25%. Fla.

Stat. §§ 687.03, 687.071. It is a criminal offense – misdemeanor or felony – to grant loans with effective interest rates of 25% or more but less than 45%. Fla. Stat. §§ 687.071(2), (3). Interest rates above 45% are punished as third-degree felonies. Fla. Stat. § 687.071(3). The Roman Republic passed laws in 340 BC.

A.D. which completely forbade interest. W. Visser and A. McIntosh, History of Usury Prohibition, A Short Review of the Historical Critique of Usure (1998). In 1933, the Florida Supreme Court stated: “The very purpose of usury laws is to bind the power of creditors over necessary debtors and to prevent them from extorting harsh and unreasonable conditions in the granting of credit.” Chandler v. Kendrick, 146 So. 551, 552 (fla.

1933). The regulation of interest rates is generally governed by consumer protection legislation. Florida also criminalizes charging extremely high interest rates. In all cases, interest is lost by the lender and is repaid twice. Charging interest rates of 25 to 45 per cent is an offence punishable by up to 60 days` imprisonment and a $500 fine. Imposing an interest rate higher than 45% is a Class 3 crime. Keeping the books of a loan with an interest rate greater than 25% is a first-degree offense. This means that record holders are also responsible for reporting high interest rates.

All charges, including interest, that exceed the total amount of all fees approved and permitted under this Chapter are a violation of Section 687, which governs interest and usury, and penalties in this Chapter apply. In the event of an error in good faith, the Licensee will reimburse the Borrower the amount of the surcharge without undue delay, but within 20 days of the discovery of the error. (c) notwithstanding anything else in this Division, any landlord or dealer or any person who lends money or provides any other form of credit who regularly sells or leases property, property or services used for purposes other than personal, family or household, or an assignee of such lessor, merchant or person who lends money or provides any other form of credit; who is the owner of an instalment trade agreement, each person or entity of which is subject to the laws of any jurisdiction of the United States, a state, the District of Columbia, the Commonwealth of Puerto Rico or any territory or island belonging to the United States, may, if the contract so provides, on any payment in default for a period of at least 10 days, charge a late payment fee not exceeding 5% of this rate. However, only such late fees may be charged for a payment, regardless of this, during the period during which it remains in default. Any late fee imposed under this paragraph shall not be considered as interest or financing charges charged on the granting of the loan or any other credit renewal or as a condition thereof and shall not be taken into account in determining the cost limit provided for in this Section that may be charged on the occasion of the loan or other credit extension in accordance with the loan or other credit extension. to the laws of that State. “If usury is invoked as a defence, the borrower must assert and prove the four elements of a usury transaction with clear and satisfactory evidence.” Rollins v. Odom, 519 So. 2d 652, 657 (Fla. 1st DCA 1988) (citations omitted). In other words, “the fact that the creditor intentionally and with corrupt intent demanded or accepted more than the prohibited interest must be expressly and affirmatively asserted and proven by clear and satisfactory evidence.” (Citation omitted). Usury generally refers to the practice of charging interest on a loan that exceeds the maximum allowable interest rate set by law.

The concept of usury and laws, on the other hand, has been around literally for thousands of years. Susan Lorde Martin, Financing Litigation On-Line: Usury & Other Obstacles, 1 DePaul Bus. and Com. L. J. 85, 89 (2002). The Old Testament commands that “thou shalt not lend usury to thy brother” or “shall not accept usury from him.” The Bible, Deuteronomy 23:19; Leviticus 25:35 Many borrowers do not know the maximum interest rate until they have already paid it. Or some pay a high interest rate and aren`t sure if interest laws apply to their specific loan.

If you want to learn more about usury laws, or if you want to discuss the details of your case with a lawyer, there are many attorneys in Florida with usury experience who may be able to help you.