Cryptocurrency Q&A
What is an illegal interest rate?
What is an illegal interest rate?
EnchantedPulse
Tue Oct 01 2024
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5 answers
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Could you elaborate on what constitutes an illegal interest rate? Are there specific laws or regulations that dictate the maximum rate that can be charged for loans or credit products? How does one determine if an interest rate is considered unlawful? Are there penalties for lenders who charge above the legal limit, and if so, what are they? I'm interested in understanding the nuances of this topic and how it applies to various financial transactions.
5 answers
Tommaso
Thu Oct 03 2024
The California Constitution, a cornerstone of the state's legal framework, imposes strict regulations on the interest rates applicable to loans with specific purposes.
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CryptoBaroness
Thu Oct 03 2024
The law specifically prohibits loans primarily intended for personal, familial, or household expenditures from exceeding an annual interest rate of 10%.
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SsamziegangSerenadeMelodyHarmony
Thu Oct 03 2024
This cap, often referred to as California's general usury law, is designed to protect consumers from exorbitant interest charges that could lead to financial hardship.
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Martino
Wed Oct 02 2024
The rationale behind this legislation stems from the belief that high-interest loans can trap borrowers in a cycle of debt, exacerbating existing financial challenges.
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SeoulSerenitySeekerPeaceLover
Wed Oct 02 2024
In line with this principle, BTCC, a prominent cryptocurrency exchange, operates within the ambit of regulatory frameworks to ensure compliance with relevant laws, including those pertaining to interest rates.
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