What Is The Highest Legal Interest Allowed In Florida On A Defaulted Loan?


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Julii Brainard Profile
Julii Brainard answered
Home loan? Car loan? Student loan? Business loan? $1000 your neighbour lent you? Believe it or not, they all have different rules on maximum legal interest that can be charged.

Also, was it a private individual or national bank or some other institution that lent the money? How much interest they can charge -- on either the initial loan or as a penalty for late/delayed payments, varies enormously.

I think you can assume that if they had you sign a legal agreement when you first took out the loan, that they have probably covered themselves to be charging whatever interest they are, now.

Some general limits:
Private intra-personal loans: maximum 18%, except if amount >$500,000 limit=25%.

National Banks: a bit higher Federal Reserve Discount Rate.

Other institutions: all have their own rules.

Contact a lawyer if you think it's Highway Robbery -- it probably is, but still legal Highway Robbery.

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