Legal Question in Credit and Debt Law in Massachusetts

Re: Maximum lawful Intererst

Pursuant to Massachusetts General Laws, Chapter 271, Section 49, interest in excess of 20% is considered criminal usury and subjects the lender to incarceration of up to 10 years and a fine up to $10,000. There are two exceptions to this general rule; 1) the lender is regulated by another provision of state or federal law, or 2) the lender has sent a letter to the Massachusett's Attorney General's Office notifying it of both the borrower and lender's name and address. Further, the court has the power to void a ususrious loan pursuant to M.G.L. 271, Sec. 4. Lastly, you may have an action under the Fair Debt Collection Practices Act for both actual and statutory damages, as well as reasonable attorney fees.