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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118252
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Is there a cap on the annual interest a company can charge

Customer Question

Is there a cap on the annual interest a company can charge (through a contractual provision) annually in California?
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Business transactions or banking transactions are not subject to the CA law on usury. The CA law allows businesses to charge any reasonable interest agreed upon by the parties. This is how some of these payday loan crooks get away charging 300% or more interest, they are a business and the loan is based on a contractual agreement and it is not a person to person personal type loan.