A loan is usurious and unenforceable if it seeks recovery of annualized interest rate in excess of 16 % from individual borrowers

The New York General Obligations Law provides that the legal rate of interest charged on a loan is six (6) percent per annum unless a different rate of interest is fixed under section 14 (a) of the Banking Law.  Section 14 (a) of the New York Banking Law holds that the maximum rate of interest [&he...
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Lenders that seek to recover compound monthly interest on loans for less than $250,000 are unenforceable and void

New York statutory law limits a lender’s ability to collect compound interest on any loan for $250,000 or less.  Indeed, “compound interest” is commonly defined as interest on interest or interest that is paid on both the principal and the previously accumulated interest.  “Compound intere...
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