Go to Jeff Salisbury LWGate Home Page.From: "Abbott" <labbott@mho.net>
Subject: Setting an interest rate for a private loan
Date: Fri, 15 May 1998 17:12:15 +0000
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Hi Sandi,
> She and my step-dad make "hard money" loans as a way to
> supplement their retirement income. Recently, a lawyer told
> them that the written agreement they had with one of their
> less-than-stable borrowers was illegal, since the agreed-upon
> interest rate of 18% (for a private, unsecured personal note)
> was usurious.
>
> However, he did NOT tell them what was considered a fair
> and legal amount.
>
> Any ideas where to find out? This is in California.
Sorry, not a clue.
What I would like to hear is why this is usurious, when many credit
card companies charge even higher rates! Those are also unsecured
"loans" to individuals. What could the difference possibly be?
I do know that in Colorado, it is some where around
30% to be usurious, and that can be with security!
Very confusing stuff isn't it.
Joell
labbott at mho dot net
"Life is what happens to you
While you're making other plans"JLennon
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