Legal Question in Credit and Debt Law in California

Hey Guys,

If I borrow a friend a $100 and say he must pay me back a $150 in 40 days.

Is that legal?

Do Usury laws apply with local state interest rate? As I'm not compounding interest if he doesn't pay me back, It's just the once off $50 fee.

Thanks


Asked on 9/03/14, 11:26 am

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

This sounds like a violation of California's usury laws unless you qualify for one of the exceptions like a registered payday lender.

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Answered on 9/03/14, 11:35 am


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