National Pawnbrokers Day 2024 is on Friday, December 6, 2024: Usury interest rate(s). How is it defined? Arizona.?

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Credit card companies are exempt from your "Arizona" ursury laws. See why by reading the following:

Many state's laws provide that you cannot lend money at an interest rate

in excess of a certain statutory maximum. This is a "usury limit."

Unless Otherwise Stated, The Rates Are Simple, Not Compound Interest.

Further We Are Stating The **Present** Limits, the ones applicable at

the time that this research was completed. Many states have had lower

limits in the past.Further, in most states a late charge or other fee

exacted from someone who owes another money is also counted as interest.

"But my car loan is higher than that"; "But I'm paying way more than

that on my credit cards." That's right! Banks have separate rules. In

fact, due to high inflation, in 1980, 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.

The usury limit which is stated as the general usury limit is the rate

that can be charged by one person or corporation to another, in other

words, if you lend your next door neighbor $ 100.00, the rate stated is

the limit. To charge more you must get a banking, pawnbroking, or

whatever license. This also means that special kinds of loans, like

those from pawnbrokers or small loan companies are not stated.

In some states we also have a "legal rate." In such states, as a general

rule, if you have a contractual obligation that provides simply for

interest without a specific term, or "interest at the highest legal

rate" then the "legal rate" what applies. In other instances we have

stated a "judgment rate." That's the rate that final judgments bear. In

states without a usury limit, there still may be a federally imposed

limit because at certain astronomical rates of interest "loan sharking"

will be inferred by the federal government.

Usury Is A Complicated Area Of Law. Transactions that a person would not

consider to be affected by usury often are, for example, repurchase

agreements, or sales with an option to repurchase are often found to be

loans. A word of caution. Before trying to lend someone money or

"invest" with a guaranteed return, see an attorney to make sure that you

don't run afoul of the usury laws. In state's that specify one limit for

consumers and one limit for non-consumers, you cannot avoid the usury

limit by creating a sham business deal. In a supplement that is now

being prepared and will be available soon, we will review the penalties

for usury in each state and point out special circumstances in each

state.

ALABAMA, the legal rate of interest is 6%; the general usury limit is

8%. The judgment rate is 12%.

ALASKA, the legal rate of interest is 10.5%; the general usury limit

is more than 5% above the Federal Reserve interest rate on the day

the loan was made.

ARIZONA, the legal rate of interest is 10%.