General Question

susanc's avatar

What's the legal limit on how much interest can be charged on a debt?

Asked by susanc (16112points) August 5th, 2008

(Someone is resisting paying me back a loan.) Credit card companies seem to be able to charge whatever they want. How about the rest of us?

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9 Answers

Lightlyseared's avatar

what ever you can get away with!

If you’re having difficulty, you could sell the debt to a debt recovery firm (the mob) and let them deal with it.

susanc's avatar

No, seriously.

Lightlyseared's avatar

business or personal?

poofandmook's avatar

I don’t think there is a limit. Those crazy payday loans on TV charge 90something percent… read the fine print. Scary!

jrpowell's avatar

This has a list of the laws by state. And the introduction briefly states why banks are able to charge more than a person to person loan.

Trustinglife's avatar

I could sell a debt to a debt recovery firm? Really?

I gave a $480 personal loan to help someone pay for training at a new company. She completed the training but the job didn’t work out, and she left shortly after. She has paid back $100 but seems to only have good intentions to pay it back, not to actually pay it back. She sometimes doesn’t reply to my e-mails, and I’ve been feeling frustrated.

Hope the add-on question is permitted here, about selling the debt to a debt-recovery company.

susanc's avatar

I think when you sell the debt, you only get part of what you’re owed, and the person who owes you gets hassled as well as hustled along. Is that what you want?

Trustinglife's avatar

With sufficient warning to her, yes. I don’t know her well, and she seems to not have any intention of paying me back. I’d rather someone else deal with it than me, even if I get less of a cut.

Do you know of any firms to contact?

Paydayselect's avatar

There is no such limit, it entirely depends on the terms and conditions of the lendor company.

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