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Q:
Are there any statutes that govern a situation where a collector demands the remaining principal, plus interest at the rate of 22 percent interest per year?

I'm hoping you can answer a quick question for me. Are there any statutes that govern a situation where a collector demands the remaining principal, plus interest at the rate of 22 percent interest per year? Aren’t there usury laws against charging this much interest? Thank you in advance for answering this question. -Rose

Dear Rose,

I am not an attorney, but I will try to answer your question to the best of my ability. It is my understanding that some states do limit the amount of interest a creditor can charge. However, creditors can charge as much interest as the law in their state of operation allows—even if you do not live in the same state. For more information on your state’s laws, contact your local consumer protection office.

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