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PA Usury Law - Personal Loan

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EagleG17

Junior Member
A loan contract was created and signed between two parties in Pennsylvania. The loan was for the amount of $35,000.00 and had a stated interest rate of 7%. Based upon my research with usury laws in PA, 6% would be the maximum allowed rate for such agreement.

Would this contract hold up in a civil trial?
 


LdiJ

Senior Member
A loan contract was created and signed between two parties in Pennsylvania. The loan was for the amount of $35,000.00 and had a stated interest rate of 7%. Based upon my research with usury laws in PA, 6% would be the maximum allowed rate for such agreement.

Would this contract hold up in a civil trial?
According to this article:

http://www.usurylaw.com/state/pennsylvania.php

The contract would NOT hold up.
 

Dave1952

Senior Member
My quick Google suggests that 6% is the upper limit unless there is a contract. There is a contract. The court will not find 7% excessive.
 

EagleG17

Junior Member
Where did you find that? I read 6% is the maximum rate allowed in a contract but don't know if the contract will hold up as enforceable.
 

OHRoadwarrior

Senior Member
All you can ever tolerate about PA usury information.


http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&ved=0CEoQFjAF&url=http%3A%2F%2Fwww.portal.state.pa.us%2Fportal%2Fserver.pt%2Fdocument%2F657347%2Floan_interest_and_protection_law_pdf&ei=kUnXUoPoNuGC2AXWjYCwCw&usg=AFQjCNEeKzqlkDxGXequy2093xJEeeGr4g&sig2=59svQq42NlI2xeH1z8K09A&bvm=bv.59568121,d.b2I&cad=rja
 

Dave1952

Senior Member
Don't remember where I found it but it was on the first page of Google. Here's some banking law for Penn.

ARTICLE II
MAXIMUM LAWFUL INTEREST RATE
Section 201. Maximum Lawful Interest Rate.
(a) Except as provided in Article III of this act, the maximum lawful rate of interest for the loan or use of money in an amount of fifty thousand dollars ($50,000) or less in all cases where no express contract shall have been made for a less rate shall be six per cent per annum.
(b) The maximum lawful rate of interest set forth in this section shall not apply to:
(i) an obligation to pay a sum of money in an original bona fide principal amount of more than fifty thousand dollars ($ 50,000);
(ii) an unsecured, noncollateralized loan in excess of thirty-five thousand dollars ($ 35,000); or
(iii) business loans of any principal amount.

You mentioned a contract, so see 201(a)
 

I'mTheFather

Senior Member
Just so you know, all your threads are cached on google... Deleting them doesn't remove them from the internet.

Hopefully, you won't have any more questions, as thread deleters are remembered and ignored.
 

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