Did you know?
A 1978 Supreme Court decision (Marquette National Bank v. First of Omaha Service Corp.) determined national banks only have to obey the
interest-rate caps of the state they are chartered in, not that of the state where a bank's customer lives.
What does this mean to you, the customer?
When a bank from a state without limits on interest, like Delaware, issues credit cards to people living in states like Minnesota, which caps credit card
interest at 18 percent, the customer can be charged any rate of interest.
interest-rate caps of the state they are chartered in, not that of the state where a bank's customer lives.
What does this mean to you, the customer?
When a bank from a state without limits on interest, like Delaware, issues credit cards to people living in states like Minnesota, which caps credit card
interest at 18 percent, the customer can be charged any rate of interest.
Delaware (JP Morgan Chase, MBNA, Discover, HSBC)
New Hampshire (Providian)
South Dakota (Citibank)
Utah (American Express)
Virginia (Capital One)
Arizona 36% Cap (Direct Merchants)
ALABAMA, the general usury limit is 8%
.
ALASKA, the general usury limit is more than 5% above the Federal Reserve interest rate on the day the loan was made.
ARIZONA, no usury limit
ARKANSAS, for non-consumers the usury limit is 5% above the Federal Reserve's interest rate; for consumers the general usury limit is 17%.
CALIFORNIA, the general usury limit for non-consumers is more than 5% greater than the Federal Reserve Bank of San Francisco's rate.
COLORADO, the general usury limit is 45%.
CONNECTICUT the general usury rate is 12%.
DELAWARE, the legal rate of interest is 5% over the Federal Reserve rate. No usury limit
DISTRICT OF COLUMBIA, the general usury limit is in excess of 24%.
FLORIDA, the general usury limit is 18%. On loans above $ 500,000 the maximum rate is 25% interest and in writing.
HAWAII, the usury limit for consumer transactions is 12%.
IDAHO, Judgments bear interest at the rate of 5% above the U.S. Treasury Securities rate.
ILLINOIS, The general usury limit is 9%. The judgment rate is 9%.
INDIANA, Presently there is no usury limit; however, legislation is pending to establish limits.
IOWA In general consumer transactions are governed at a maximum rate of 12%.
KANSAS, the general usury limit is 15%. On consumer transactions, the maximum rate of interest for the first $ 1,000 is 18%, above $ 1,000, 14.45%.
KENTUCKY, the general usury limit is more than 4% greater than the Federal Reserve rate or 19%, whichever is less. On loans above $ 15,000 there is no limit.
LOUISIANA, Usury limit for individuals is 12%, there is no limit for corporations.
MAINE, Usury limit bear interest at the 52 week average discount rate for T-Bills, plus 4%.
MARYLAND, the general usury limit is 24%.
MASSACHUSETTS, the general usury rate is 20%.
MICHIGAN, usury limit is 7%.
MINNESOTA, usury limit is 8%.
MISSISSIPPI; the general usury limit is more than 10%, or more than 5% above the federal reserve rate. There is no usury limit on commercial loans above $
5,000.
MISSOURI, Corporations do not have a usury defense.
MONTANA, the general usury limit is above 6% greater than New York City banks' prime rate.
NEBRASKA, the general usury limit is 16%.
NEVADA, there is no usury limit.
NEW HAMPSHIRE, there is no general usury rate.
NEW JERSEY, the general usury limit is 30% for individuals, 50% for corporations. There are exceptions to the law.
NEW MEXICO, We couldn't find any usury limit. (Please check state law)
NEW YORK, the general usury limit is 16%.
CAROLINA, the general usury limit is 8%. However, there is a provision for a variable rate be careful and see a lawyer!
NORTH DAKOTA, the general usury limit is 5 1/2% above the six-month Treasury Bill interest rate.
OKLAHOMA, Maximum rate on non-consumer loans is 45. We have not found usury limit. Please check the law.
OREGON, The general usury rate for loans below $ 50,000 is 12% or 5% above the discount rate for commercial paper.
PENNSYLVANIA, 6%is the general usury limit for loans below $ 50,000, except ,check the law for the rest. It is criminal usury to charge more than 25%.
PUERTO RICO, All other rates are set by the Finance Board of Office of Commissioner of Financial Institutions. Check the latest.
RHODE ISLAND, The general usury limit is 21% or the interest rate charged for T-Bills plus 9%.
SOUTH CAROLINA, There is no general usury limit for non-consumer transactions. The South Carolina Consumer Protection code provides regulations for
maximum rates of interest for consumer transactions. Please consult with a lawyer.
SOUTH DAKOTA, There is no usury limit.
TENNESSEE, The general usury limit is 24%, or four points above the average prime loan rate, WHICHEVER IS LESS.
TEXAS, please see a lawyer for information.
UTAH. Please see counsel for information. As per our information there are none.
VERMONT The general usury limit is 12%.
VIRGINIA, Corporations and business loans do not have a usury limit and loans over $ 5,000 for "business" or "investment" purposes are also exempt from
usury laws. Consumer loans have multiple rates.
WASHINGTON, The general usury limit is 12% or four points above the average T-Bill rate for the past 26 weeks, whichever is greater.
WEST VIRGINIA, maximum general usury limit based on market rates. Contact your attorney.
WISCONSIN, There is no general usury limit for corporations. Note that a loan to an individual
WYOMING, contact your attorney.
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