What is the legal limit on interest rates? My daughter was charged up to 28% last month by a bank.
What state? What kind of loan or indebtedness? A meaningful answer to your question is impossible without this information. There is no nationwide limit on interest rates which applies to all situations.
State of Colorado. This is an unsecured bank loan with an interest rate that floats. In the past two years it has floated monthly between 25.8% and 28.6%.
In Ontario, Canada, usuary (an illegal interest rate), IIRC, is 60% per annum. Commercial loans are not subject to this limit, as commercial short term leases are often much higher.
I suspect that you’ll find your local legislation is similar.
See http://64.78.178.125/cgi-dos/statdspp.exe?W&srch='usury'&i=0&cat=FFFFFFFFFFF800&r=10&s=8570&cr=6
Limits in Colorado apparently range from 12% - 36%, depending on the type and size of (consumer) loan.
I didn’t do an exhaustive search, and am not a Colorado attorney. If you want to pursue this further, go to http://www.findlaw.com, find Colorado statutes, and search for the word “usury”, or see a Colorado attorney.
Usual disclamers here: I am not your lawyer, you are not my client, and nothing here should be construed as legal advice.
Good luck.
There may also be exceptions to these limits. There often are. Keep that in mind when looking into this.