What is the name of your state (only U.S. law)? NJ
I thought I had a good understanding of usury laws until I came across an article that stated the following:
"the federal government passed a special law which allowed national banks (the ones that have the word "national" or the term "N.A." in their name, and savings banks that are federally chartered) to ignore state usury limits and pegged the rate of interest at a certain number of points above the federal reserve discount rate. In addition, specially chartered organizations like small loan companies and installment plan sellers (like car financing companies) have their own rules. "
For sales finance companies (such as retail installment sales, car financing) am I reading that there is no usury laws? For example, a purchase of a $2,000 bedroom set that I want pay over the course of 12 months. The interest rate is stated on the installment sales contact. Is this interest rate subject to the usury laws by state?
I thought I had a good understanding of usury laws until I came across an article that stated the following:
"the federal government passed a special law which allowed national banks (the ones that have the word "national" or the term "N.A." in their name, and savings banks that are federally chartered) to ignore state usury limits and pegged the rate of interest at a certain number of points above the federal reserve discount rate. In addition, specially chartered organizations like small loan companies and installment plan sellers (like car financing companies) have their own rules. "
For sales finance companies (such as retail installment sales, car financing) am I reading that there is no usury laws? For example, a purchase of a $2,000 bedroom set that I want pay over the course of 12 months. The interest rate is stated on the installment sales contact. Is this interest rate subject to the usury laws by state?
Last edited by a moderator: