J
jjccnn
Guest
I live in Texas and last year I loaned $300 to a co-worker. (I made sure that there was a signed agreement.)
According to the (signed) agreement, the borrower owes me;
(a) $300 (for original unpaid principle)
(b) $25 (for a "hndling fee" for loan)
(c) $150 (for 6 x $25 "late charge", for each month payment due)
(d) $54 (for 18% of $300, for period of one year since loan made)
NOTE: This comes to a total claim of $506
To date, no money has been repaid and I need to file claim concerning this. However, because of laws against "usurious interest" I am not sure if I can place a claim for the (above) entire amount.
I have researched Texas Laws and found that under "FINANCE CODE", "CHAPTER 302. INTEREST RATES"; 302.001 (b)
"The maximum rate or amount of interest is 10 percent a year ecxept as otherwise provided by law"
Can I make the claim as illustrated above, or do I need to eliminate items (b) and (c), or do I need to collect for an interest rate of only 10% ?
(The original loan agreement was as follows)
{ LENDER } agrees to loan the borrower the amount of $300.00 according to the following conditions:
1. The loan will be paid back on a monthly basis in the amount of $50.00 which will be due on the 20th of each month starting 20th June, 2001. If a payment is late by more than 15 days, a penalty of $25 will be imposed. According to this schedule the entire debt will be repaid by Nov. 20th, 2001 at which time a payment of $25.00 will be paid as a handling fee for this loan.
2. In the event that the above payment schedule is not met, interest will be charged at a rate of 18% per annum (or the maximum according to law, whichever is less).
3. As collateral for this loan, the borrower will give { LENDER } a { pistol } (S/N _________________) to hold until the loan, plus handling fee, plus interest due (if any) is paid in full.
Identification of Borrower is as follows:
Name ______________________________
Street Address ______________________________
City. St. Zip ______________________________
Phone No. ______________________________
Drivers Lics. No. ______________________________
_________________________ ________________________
{ LENDER } ________________
Lender Borrower
Dated: ________________ Dated: ________________
_______________________
Witness
Dated: ________________
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Question: What is the maximum interst rate which can be charged ?????
According to the (signed) agreement, the borrower owes me;
(a) $300 (for original unpaid principle)
(b) $25 (for a "hndling fee" for loan)
(c) $150 (for 6 x $25 "late charge", for each month payment due)
(d) $54 (for 18% of $300, for period of one year since loan made)
NOTE: This comes to a total claim of $506
To date, no money has been repaid and I need to file claim concerning this. However, because of laws against "usurious interest" I am not sure if I can place a claim for the (above) entire amount.
I have researched Texas Laws and found that under "FINANCE CODE", "CHAPTER 302. INTEREST RATES"; 302.001 (b)
"The maximum rate or amount of interest is 10 percent a year ecxept as otherwise provided by law"
Can I make the claim as illustrated above, or do I need to eliminate items (b) and (c), or do I need to collect for an interest rate of only 10% ?
(The original loan agreement was as follows)
{ LENDER } agrees to loan the borrower the amount of $300.00 according to the following conditions:
1. The loan will be paid back on a monthly basis in the amount of $50.00 which will be due on the 20th of each month starting 20th June, 2001. If a payment is late by more than 15 days, a penalty of $25 will be imposed. According to this schedule the entire debt will be repaid by Nov. 20th, 2001 at which time a payment of $25.00 will be paid as a handling fee for this loan.
2. In the event that the above payment schedule is not met, interest will be charged at a rate of 18% per annum (or the maximum according to law, whichever is less).
3. As collateral for this loan, the borrower will give { LENDER } a { pistol } (S/N _________________) to hold until the loan, plus handling fee, plus interest due (if any) is paid in full.
Identification of Borrower is as follows:
Name ______________________________
Street Address ______________________________
City. St. Zip ______________________________
Phone No. ______________________________
Drivers Lics. No. ______________________________
_________________________ ________________________
{ LENDER } ________________
Lender Borrower
Dated: ________________ Dated: ________________
_______________________
Witness
Dated: ________________
----------------------------------------------------------------------------------
Question: What is the maximum interst rate which can be charged ?????