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What is the highest APR that a dealership can charge in illinois. my friend is being charged 39.9% .?

6 Answers

  • 1 decade ago
    Favorite Answer

    I looked for info on usury in different states and I came across this.

    "Many state's laws provide that you cannot lend money at an interest rate

    in excess of a certain statutory maximum. This is a "usury limit."

    Unless Otherwise Stated, The Rates Are Simple, Not Compound Interest.

    Further We Are Stating The **Present** Limits, the ones applicable at

    the time that this research was completed. Many states have had lower

    limits in the past.Further, in most states a late charge or other fee

    exacted from someone who owes another money is also counted as interest.

    "But my car loan is higher than that"; "But I'm paying way more than

    that on my credit cards." That's right! Banks have separate rules. In

    fact, due to high inflation, in 1980, the federal government passed a

    special law which allowed national banks (the ones that have the word

    "national" or the term "N.A." in their name, and savings banks that are

    federally chartered) to ignore state usury limits and pegged the rate of

    interest at a certain number of points above the federal reserve

    discount rate. In addition, specially chartered organizations like small

    loan companies and installment plan sellers (like car financing

    companies) have their own rules."

    Unfortunately it sounds like your friend is getting legally screwed.

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  • 1 decade ago

    I live in Illinois and 39.9% is the highest I have seen for a car.....ever!

    I don't know if your friend can ever pay that off.

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  • 1 decade ago

    I believe the Cardit Card industry is held to 21%. I'm not sure about car dealers, but your friend can go to any bank or credit union and get it refinanced.

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  • 1 decade ago

    They can charge it, but nobody is twisting your arm to sign a contract with those rates. I would rather walk

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  • 1 decade ago

    they can charge whatever they want, i think they go up to 50%, but no one is forcing you to sign the paper, in fact if you sign the paper for that rate something must be wrong with you.

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  • 1 decade ago

    maximum apr is 18% except in florida where it is 17%

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