Posted on: 02nd Feb, 2011 02:29 pm
If the stated rate on a loan is 18% and the effective APR ends up being 87.55% does this violate the usuary laws? In other words is the APR taken into consideration. We are a state chartered credit union in Florida.
Hi Lindar!
Welcome to forums!
APR can be defined as the interest rate for a whole year rather than just a monthly fee/rate, as applied on a mortgage, etc. It is a finance charge expressed as an annual rate. Check out the state wise usury limits from the given page: http://www.mortgagefit.com/usury.html
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
APR can be defined as the interest rate for a whole year rather than just a monthly fee/rate, as applied on a mortgage, etc. It is a finance charge expressed as an annual rate. Check out the state wise usury limits from the given page: http://www.mortgagefit.com/usury.html
Feel free to ask if you've further queries.
Sussane