2006-11-05 07:43:24 · 7 answers · asked by cutieluvsu2002 1 in Politics & Government ➔ Law & Ethics
I am not sure, but I can not imagine that is a law anywhere.
Maybe you have misread, or misheard the rule. Just a guess, but perhaps it is stated something like, "can not charge over 6 percentages higher than the current rates."
2006-11-05 07:46:41 · answer #1 · answered by Anonymous · 1⤊ 0⤋
There are rules governing how much interest can be charged by loan and finance companies. An excessive interest rate is called USURY (the word has come to refer to the charging of unreasonable or relatively high rates of interest.)
Do a look-up on USURY and your state laws.
2006-11-05 15:57:54 · answer #2 · answered by Len_NJ 3 · 0⤊ 0⤋
That would be the soldiers and sailors civil relief act of 1942. It has been updated but is virtually the same. If you are not military with civilian debts prior to military active duty service, it would not apply to you. However, if you are, you will need to send a copy of your active duty orders to the finance company and they will reduce your rate for the amount of time the hardship occurs. It was intended for military reservist who took a pay cut when they were called up for active duty. Now, if you get a loan as a civilian and join the military you can make it work for you.
2006-11-06 00:15:10 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I don't think that any state has a law like that. It would put credit card companies out of business. They routinely charge anywhere from 12-25%. Not to mention that the business lobby would put full pressure against it as it would hinder businesses -- banking, etc.
2006-11-05 15:50:41 · answer #4 · answered by Jamir 4 · 0⤊ 0⤋
The type of law you're thinking of is called a "USURY" law. It generally does not apply to banks, pawnbrokers, or other specialized services. Here is a good link describing what the usury rate is in each state and what usury laws apply to:
http://www.lectlaw.com/files/ban02.htm
2006-11-05 16:01:51 · answer #5 · answered by Perdendosi 7 · 0⤊ 0⤋
Must be a fantasy law because almost all credit cards charge way more, mortgages are usually more and car loans too. Find a state where no one uses credit cards and maybe you'll find your law !
2006-11-05 15:52:04 · answer #6 · answered by kate 7 · 0⤊ 0⤋
I think you are a Little confused. there is a max and is around the 30's.
2006-11-05 15:49:01 · answer #7 · answered by Anonymous · 0⤊ 0⤋