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CalAttorney2
CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10238
Experience:  Civil litigation attorney for individuals and businesses.
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I have a loan from Avant Credit, dba thru a california LLC,

Customer Question

I have a loan from Avant Credit, dba thru a california LLC, headquartered in indiana. The loan is 59.98 % interest. Can I challenge the loan based on the rate? Maybe require Avant to recast the loan at a lower rate?
Submitted: 1 year ago.
Category: Legal
Expert:  CalAttorney2 replied 1 year ago.
Possibly - a lot of these very high interest loans violate the "Usury laws" in California (see: http://oag.ca.gov/consumers/general/usury), unfortunately the Usury laws are one of those statutory rules that has a very broad rule (maximum legal interest is 10%) that is closely followed by a wide range of exceptions that exempt most types of loans.However, it is worth at least reviewing the California Attorney General's site above, as well as this site: http://www.yourlegalcorner.com/articles.asp?cat=biz&id=97 to see if your loan is deemed "usurious" as well as to find the remedies (stripping the loan to the maximum legal rate, as well as potential penalties against the lender).If the loan is usurious, you will have a civil cause of action against the lender, and I would recommend retaining a local civil litigation attorney to assist you. Fortunately the majority of these attorneys will provide you with a free consultation, and many will represent you on a contingency basis (they will advance the costs of litigation and legal services in exchange for a portion of your successful settlement or judgment). You can find local attorneys using the State and Local Bar Association directories, or private directories such as www.AVVO.com; www.FindLaw.com; or www.Martindale.com (I personally find www.AVVO.com to be the most user friendly).