How high can personal loans realistically charge a person?

Member

Are there laws in place to keep them from charging ridiculous amounts or is this up to the bank according to credit scores? I was on a website that stated there have been some loans that have been as high as 70%. That is a lot of money in interest. So if your personal loan is $1,000 you have to pay them back $1,700!

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May 10, 2020 9:14 PM

Member

As high as they signed on for, really. This is why you ALWAYS read the fine print before you sign any kind of contract dealing with money.

May 16, 2020 1:02 AM

I honestly don't know if there are laws in place to prevent companies charging you higher than a certain percentage. I know there aw laws to protect debt collectors from harassing you have so many years but that is about it.

May 18, 2020 7:58 PM

I thought there was a protection or some kind of reassurance for people who sign up for personal loans but it seems to not be the case. It is based on the free market in the US.

July 23, 2020 12:22 AM

Member

As high as a person is willing to pay really. This is why there are a lot of banks that get away with horrific charges for people who are desperate and have poor credit scores.

July 23, 2020 8:34 PM

Member

There were companies and banks doing over 300% interest rates in New York not too long ago. They local government can crack down on it if they see a reason to and in this case, it was justifiable to do so.

July 23, 2020 11:55 PM