Is there a maximum APR allowed by law for a collection agency to charge? If so, how close does 31.474% come to it?
Online searches and the FDCPA
In South Dakota the legal rate of interest is 15%, judgments bear
interest at the rate of 12%. There is no other usury limit. Since you issue involves a collection agency it does not fall within either of those statutory limits under state law and the FDCPA is silent on this area for you. Sorry.
Practing General Attorney,
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).