Reboot Your Life: Tampa Student Loan and Bankruptcy Attorney Blog
If you are encountering collections calls or even a collection lawsuit, sometimes taking the offense is the better route. For instance, we are seeing usury violations where the rate of interest being charged on its face is 90% APR. The lawsuit may be filed by a smaller player who you’ve never heard of, who we call debt buyers.
In Florida, the maximum simple interest rate is 18% per year for loans less than $500k, for loans larger than that, the maximum is 25%. Violations can be severe, and can include all interest voided, and the lender can even face criminal charges. This may be an important negotiating point, and something that you should carefully raise to avoid making an inadvertent extortion violation yourself.
You may see an interest rate way higher than 18% for credit cards and payday lenders. Why is that? Well, they have unique rules is one answer. Rates can fluctuate based upon default rates, the company’s operating expenses, credit score and card type. They also can choose to follow another state’s laws which may allow for higher rates.
If you believe you’ve been the victim of extraordinary interest rates, please reach out to an attorney. See whether there is an exception to the 18% rate. You may be surprised about the answer.
