Interest Rate laws?

General Off Topic
1

I did a search and didn’t come up with much.

Reason I’m asking is I have a neighbor I take care of currently at MUSC with cancer in his tongue and jaw. Not looking good for him and I was going through his finances and found where he took a loan out against his truck for $1000.00. The interest rate is 39.9%!! I’ve never heard of such! My neighbor is not very literate and I don’t think he knew what he was getting. It is a 12 month loan.

Is this even legal?

Thanks in advance for any help!

2

Unfortunately, probably so. The interest rate itself was probably not 39.9%, but when you calculate the junk fees, (origination, doc prep, etc.) and add those to the finance charge, the APR could easily jump up to 39.9%, especially on such a small loan.

If you’re lucky enough to be fishing, you’re lucky enough.