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Alex Esquire
Alex Esquire, Attorney
Category: Business Law
Satisfied Customers: 16580
Experience:  Experienced Licensed Attorney
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I live in NY and I closed my business due to losses. I personally

Resolved Question:

I live in NY and I closed my business due to losses. I personally guanranteed a lease and now the leasing company is coming after me for the payments. The interest rate on the lease is close to 100% (20k worth equipment and $45k financed). I owed approximately $3,200 whe business wnet south and I dont have the $$ to pay. Can I use the NY Usury law as a defense?
Submitted: 5 years ago.
Category: Business Law
Expert:  Alex Esquire replied 5 years ago.
Hello. My name is XXXXX XXXXX I will be happy to answer your question.

Does the written lease expressly states the interest rate?
Customer: replied 5 years ago.
No it does not.
Expert:  replied 5 years ago.
Unfortunately unless the interest amount is expressly stated on the lease and exceeds lawful interest rate that can be charged in the state of NY, the court will consider the fact that the amount of the lease exceeds the value of the equipment leased as simply a profit that the leasing company is entitled to make, thus using usury statute as a defense is not likely to work.

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