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.
The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.
Additional Creditors Rights Articles
- What Is The Statute Of Limitations In Minnesota?
- Is A Confession Of Judgment Allowed?
- What Is A Replevin?
- Can A Foreign Judgment Be Used In Minnesota?