The Usury Law

[TheDude]

Hello board I have aquestion? If a family member approach you and that family member is an investor of some sort,and gives you this great plan about using your money and ask for $10,000 and writes up this nice contract about giving you 1k a month for the next 12 months and at the end of those 12 months return your $10,000 also, can he come back in a year and use the usury law even if he drew up the contract and initiated the loan! I am in the state of georgia! Thanks

 

[ALawyer]

120% interest is usury in most states. I don't know about GA law, but if he's given you 12k already, that's more than 20% interest. As a matter of equity, you'd be a pig, even if there is some legal exception (which I doubt) to the rules on usuary based on who drew up the contract.