What Is The Pre-Judgment Rate Of Interest?
- In a consumer credit transaction, such as an open end consumer credit agreement, the creditor can charge interest at the rate of 1.5% per month or 18% per annum, with some exceptions;
- in a business or agricultural loan transaction, the maximum interest rate is 4.5% over the prevailing federal district rate;
- in a new vehicle auto loan transaction, the maximum rate of interest is 18% per annum; and
- in a used vehicle auto loan transaction, the maximum rate of interest is 23.25% per annum.
You should note, however, that a corporate debtor is not allowed to plead usury as a defense in any action.
Speak to an Experienced Creditors Rights Attorney Today
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified creditors rights lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local creditors rights attorney to discuss your specific legal situation.
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