Finance Law Question - Usurious Interest Rates?

[weplumcrazy]

What is the name of your state? TX

After attempting to reserch this in the Texas Finance Code I want to make sure I understood what I found... This concerns a loan made by an individual to another individual for personal reasons. The obligor, unable to obtain a loan from a bank, entered into a loan agreement with an individual who charged him 100% interest on the loan. On a loan of $5500 the obligor paid back $11,000. Learning shortly after final loan payment was made that this person could very likely be considered to be "loan sharking" he wants to know what are his rights and what type of recourse there is for this. A personal loan between individuals is subject to usary laws isn't it? Can he actually recover up to three times the interest he was charged over the legal limit? Does this require hiring an attorney or can he file a suit himself? Would there be any criminal charges against financer?

Any information or advice on this would be greatly appreciated.

Thank you.

 

[JETX]

A personal loan between individuals is subject to usary laws isn't it?

No... however, it is subject to USURY laws.

Can he actually recover up to three times the interest he was charged over the legal limit?

Of course he can. Your own post says that is exactly what he did!!

Does this require hiring an attorney or can he file a suit himself?

Depends largely on your legal skills.

Would there be any criminal charges against financer?

No.

 

[weplumcrazy]

Thank you JETX.

The only thing I'm confused about is your response to the question "Can he actually recover three times the amount he paid over the legal interest?"

He has recovered nothing at this point. He hasn't filed suit or taken any action. He is trying to get all this information gathered so he will be prepared when he goes to file suit.

Spelling correction noted. It was late and I was tired.