The interests laws of South Carolina („SC“) are set forth in the Code of Laws of South Carolina, Title 34 (Banking, Financial Institutions and Currency). According to article 34-31-20, the maximum statutory interest rate of the State is eight and three-quarters of a per cent per annum. The interest rate for a monetary judgment will be the prime rate indicated in the first issue of the Wall Street Journal, published in January, with an increase of four percent per year. The South Carolina Consumer Protection Code exempted certain transactions and institutions from the government`s imposed interest rate. The Usury Act sets a limit on the amount of interest that can be charged on different types of loans. Most states have usury laws, but national banks can charge the highest interest rate allowed in the bank`s home state — not the cardholder`s. So, while you live in Arkansas, where the maximum interest rate is 17%, your card issuer may charge you a higher amount if it is headquartered in another state with a higher maximum rate. And if your transmitter is based in a state like Maine that doesn`t have usury laws, you have even less protection. Usury refers to the practice of charging a very high interest rate, which is considered inappropriate. Each state has a different approach to usury laws.
For example, if you`re in South Carolina, the maximum legal interest rate is set at 8.75%, but 18% for credit card debt. However, wear is not always so black and white. Many states bow to contract law instead of usury. For example, the usury law in Hawaii sets the maximum interest rate at 10%, but a written contract may prevail over that maximum. This is also the case in other states, including Arizona, Utah and Texas. If you are a cardholder with a balance, it is in your best interest to keep an eye on the funding costs you pay to your card issuer. There are no federal regulations on the maximum interest rate your issuer can charge you, although each state has its own approach to limiting interest rates. There are state usury laws that impose the highest interest rate on loans, but these often don`t apply to credit card loans.
If you`re facing the burden of high interest rates, you can negotiate with your lender or take other steps to better manage your credit card debt. If you want to know what the usury law is for your state, there are databases that offer state-specific information. Keep in mind that your card issuer is not required to comply with the usury law of your home state. Usury is a very complicated area of law. Transactions that a person would not consider affected by usury, such as repurchase agreements, are often subject to these limits. A word of warning: Before you try to lend money to someone or try to invest with a guaranteed return, consult a lawyer to make sure you don`t break usury laws. What you may not know is that there is no maximum interest rate at the federal level that a credit card company can charge. However, cardholders may find some security in the CARD Act and usury laws that set interest rate limits from state to state. The general wear limit shown is the rate that can be charged by one person or company to another.
In other words, if you lend $100.00 to your neighbor, the listed price is the limit. If you want to charge more than the advertised price, you will need a special license such as a banking license or pawnshop license. This also means that special types of loans, such as those from pawnshops or small credit companies, are not specified. So, are there any limits to what credit cards can charge as interest? Luckily for us, the state of Palmetto has consumer protection laws that limit interest rates on credit cards, judgments, and loans. Here are the basics of interest laws in South Carolina. This information may or may not represent the full scope of South Carolina`s interest and usury laws. Many states may, from time to time, amend their laws with respect to permissible interest and usurious interest rates and exemptions. Be sure to review South Carolina`s Interest and Usury Act in its entirety and consult with a designated attorney if you have specific questions. Other fine print to watch out for are exceptions, as credit card loans may not be bound by usurious laws. For example, in California, the maximum interest rate is set at 10%, but the law states that banks and similar institutions are exempt. This is also the case in Florida, Minnesota and New Jersey. Usury laws were repealed on June 25, 1982, but the old law may apply to prior transactions (formerly § 34-31-50) In states that set a limit for consumers and a limit for non-consumers, you cannot avoid the wear limit by entering into a fictitious transaction.
In a supplement that is being prepared and will be available soon, we will review usury penalties in each state and point out the particular circumstances in each state. In some circumstances, a domestic bank may even use the higher interest rate of a state in which it has branches instead of using the interest rate of the state in which it resides, regardless of the state in which the consumer lives. According to Christopher L. Peterson, a law professor at the University of Utah in Salt Lake City and an expert in usury law, „In fact, it meant that there were virtually no interest rate limits that applied to any type of bank, anywhere in the country.“ If you need more help understanding government interest rates or wear and tear limits, post your job on the UpCounsel marketplace. UpCounsel only accepts the top 5% of lawyers on its website. UpCounsel lawyers come from law schools such as Harvard Law and Yale Law and have an average of 14 years of legal experience, including working with or on behalf of companies such as Google, Menlo Ventures, and Airbnb. There are also laws that protect those serving in the armed forces and their dependents from high interest rates. The Military Loans Act limits credit card interest rates to 36% for those who benefit from the protection of this law. The pending legislation called the Veterans and Consumer Fair Credit Act aims to extend this protection to all consumers. And the Military Civilian Assistance Act limits interest rates to 6% on any credit card debt an active military member incurs before entering military service.
