Updated: Sep 17, 2020
Until a more recent post on the Law of the Spirit vs the Law of Sin and Death, I didn't know what usury was. This post will explain what usury is and provide information for you. We cannot become free until we make a stand, even against these companies that have gotten away with crimes that most people don't even know are crimes.
Usury Laws in the Bible
25 If thou lend money to any of my people that is poor by thee, thou shalt not be to him as an usurer, neither shalt thou lay upon him usury H5392.
H5392-Usury-נֶשֶׁךְneshek, neh'-shek; from H5391; interest on a debt:—usury.
13 Hath given forth upon usury H5392, and hath taken increase: shall he then live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him.
36 Take thou no usury of him, or increase: but fear thy God; that thy brother may live with thee.
37 Thou shalt not give him thy money upon usury H5392, nor lend him thy victuals for increase.
Usury Laws of the United States
State laws set limits on the amount of interest a lender may charge consumers, often referred to as "usury" laws, but they are not always enforceable. ... Missouri law stipulates that interest rates on debt may not exceed 9 percent without an agreement to a higher rate
Missouri Laws 408.030 – Interest, maximum rate allowed — penalty for overcharge, limitation on …
Parties may agree, in writing, to a rate of interest not exceeding ten percent per annum on money due or to become due upon any contract, including a contract for commitment; except that, when the “market rate” exceeds ten percent per annum, parties may agree, in writing, to a rate of interest not exceeding the “market rate”. A contract for commitment to lend money shall not exceed the maximum lawful rate in effect on the date of such contract. A loan entered into pursuant to a valid contract for commitment shall not exceed the maximum lawful rate in effect on the date of such commitment. The “market rate” for any calendar quarter shall be equal to the monthly index of long term United States government bond yields for the second preceding calendar month prior to the beginning of the calendar quarter plus an additional three percentage points rounded off to the nearest tenth of one percent. Calendar quarters begin on January first, April first, July first, and October first.
If you are unaware of usury laws and you don't know that they even exist, then you agree to a higher rate out of lack of knowledge. These companies are thus taking advantage of you and they know the law, but because you don't, they get away with it. I am tired of companies disobeying the law both of the land and of the Lord God Almighty. People have accepted this as normal and then wonder why companies get away with everything. Until we do something about this and hold them to the Law, nothing will change.
What is Usury Defined as by Law
What Does 'Usury' Mean?
The term usury dates back to the Middle Ages, when it referred to the practice of charging interest in exchange for lending money. Once this practice became more commonly accepted, usury was used to describe exorbitant amounts of interest. However, some cultures and religions continue to have an unfavorable view of interest-bearing debt in general, and thus use the term accordingly.
12 U.S. Code § 85. Rate of interest on loans, discounts and purchases
Any association may take, receive, reserve, and charge on any loan or discount made, or upon any notes, bills of exchange, or other evidences of debt, interest at the rate allowed by the laws of the state, territory, or District where the bank is located, or at a rate of 1 per centum in excess of the discount rate on ninety-day commercial paper in effect at the Federal reserve bank in the Federal reserve district where the bank is located, whichever may be the greater, and no more, except that where by the laws of any state a different rate is limited for banks organized under state laws, the rate so limited shall be allowed for associations organized or existing in any such state under Title 62 of the Revised Statutes.
When no rate is fixed by the laws of the state, territory, or district, the bank may take, receive, reserve, or charge a rate not exceeding 7 per centum, or 1 per centum in excess of the discount rate on ninety day commercial paper in effect at the Federal reserve bank in the Federal reserve district where the bank is located, whichever may be the greater, and such interest may be taken in advance, reckoning the days for which the note, bill, or other evidence of debt has to run. The maximum amount of interest or discount to be charged at a branch of an association located outside of the states of the United States and the District of Columbia shall be at the rate allowed by the laws of the country, territory, dependency, province, dominion, insular possession, or other political subdivision where the branch is located. And the purchase, discount, or sale of a bona fide bill of exchange, payable at another place than the place of such purchase, discount, or sale, at not more than the current rate of exchange for sight drafts in addition to the interest, shall not be considered as taking or receiving a greater rate of interest.
12 U.S. Code § 86. Usurious interest; penalty for taking; limitations
The taking, receiving, reserving, or charging a rate of interest greater than is allowed by section 85 of this title, when knowingly done, shall be deemed a forfeiture of the entire interest which the note, bill, or other evidence of debt carries with it, or which has been agreed to be paid thereon. In case the greater rate of interest has been paid, the person by whom it has been paid, or his legal representatives, may recover back, in an action in the nature of an action of debt, twice the amount of the interest thus paid from the association taking or receiving the same: Provided, That such action is commenced within two years from the time the usurious transaction occurred.
Federal Laws on Auto Loans
The law says that lenders cannot charge more than 16 percent interest rate on loans. Unfortunately, some lending companies owned by or affiliated with vehicle makers have devised schemes whereby you are charged interest at rates exceeding the maximum permitted by law. This is called usury.
What a Law Office Has Done
In New York state, the most a lender can charge for annualized interest is 16 percent. However, one of our New York clients was charged an annualized interest rate of nearly 24 percent for his vehicle loan.
He would have had to pay nearly double the purchase price of the vehicle by the time he made his final payment. But he seeks to avoid that outcome by fighting back.
By participating in the class-action lawsuit we filed, our client — and many others harmed in the same way — may not have to pay any unpaid principal or additional interest on their car loans.
They also may be able to get back all the interest they already paid that was more than the 16 percent annual legal limit.
It is the practice among some dealerships to aggressively push buyers into loans from lenders owned by or affiliated with the manufacturer of the car or truck being bought. These loans often come with usurious rates of interest.
We are litigating against this unconscionable practice and fighting to stop it.
You should never have to pay a penny more in interest above the amount a car-loan lender can legally charge you.
If you own a car or truck purchased with financing obtained from a lender owned by or affiliated with the vehicle’s maker, and you pay a higher interest rate than is allowed in your state, you may be entitled to compensation for usurious interest rate charges.
But your lender will not compensate you without a fight. That’s why you’ll need to be represented by a law firm with a reputation for fighting twice as hard as the lender you’re suing. Read more about car loan usury: W&L Sues Chrysler’s Lending Unit, Alleges Illegal Interest Rates.
Supreme Court Case
On Monday, June 27, 2016, the Supreme Court of the United States denied the petition for certiorari ( they sided with the lower courts ruling) in Midland Funding LLC v. Madden, No. 15-610. The Supreme Court’s denial leaves intact the unusual – and troubling – decision by the U.S. Court of Appeals for the Second Circuit, Midland Funding, LLC v. Madden.
In that case, the Second Circuit held that the application of state usury laws to nonbank assignees is not preempted by Section 85 of the National Bank Act (the “NBA”), but rather such assignees remain subject to state usury limits. The Second Circuit’s decision suggests that a nonbank assignee of a bank-originated loan might not be able to collect the amount of interest contracted for by the originating national bank if the rate of interest exceeds the usury rate otherwise applicable to the assignee.
To understand the import of the Madden decision, it is critical to appreciate the complex patchwork of restrictions that comprise usury law in the United States. In the U.S., usury laws are established by the individual states. All but six states impose some form of numeric usury limit, and the rates vary widely from state to state. A state typically imposes multiple usury limits which can vary depending on the nature of the borrower, the purpose of the loan, the amount of the loan, and the nature of the collateral. While usury is often thought of as a consumer issue, slightly less than half the states have usury limits that apply to at least certain forms of commercial purpose loans, too (although the permitted limits are often higher than for consumer loans). Some usury rates are fixed by statute, other usury rates are tied to an index (such as the Discount Rate), and others are set periodically by the state bank commissioner. Applicable usury rates for moderately sized consumer loans can be as low as a 6% fixed rate, or 5% plus the Discount Rate. How usury is calculated – in particular, what fees are deemed to be part of “interest” – also varies from state to state. States often take the position – either by statute or by judicial interpretation – that the usury limit applies to loans made to residents of that state, and cannot be avoided by a choice-of-law clause because such limit reflects a fundamental public policy, at least with respect to consumer loans. The penalties for usury range from the lender (or holder) forfeiting excess interest, to the loan being deemed unenforceable, or possibly the imposition of criminal penalties. As a result, lenders – in particular, consumer lenders – operating on a multistate basis face an enormous burden when complying with these state usury restrictions.
I am filing a lawsuit against Gateway Financial who is charging me 24% interest. I will be asking the courts to amend all contracts with Gateway and not just my own. I called them yesterday on 8-6-2020 and gave them an opportunity to refinance my loan in according to the law and they said "we are not breaking the law, you signed a contract and we don't refinance"
This all may be what they believe to be true, but when we Know the Laws and apply them, We Make changes! Don't just sit by and accept what is Wrong
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Link to Title 62 of the Revised Statutes
How to use the Lexicon