Is it illegal for Check n' Go over 200% interest on a $2500.00

Asked over 1 year ago - Claremont, CA

My boyfriend decided to get a Check n' Go personal loan in the amount of $2500 about six months ago. I just recently found out that the interest rate is over 200%. He has been paying $285. every other week and still owes over $2800.00! When I heard about it I though "This has to be illegal" so I did some "Googling" and found that there was a class action suit against the company sometime last year but there were very specific details as to how they are still allowed to charge such a high interest rate. We are in CA and the company is in OH. I would like to find a way to help him get out of this loan that he will probably never pay off!!

Attorney answers (2)

  1. Scott Richard Kaufman

    Contributor Level 20

    Answered . Horrible stuff really. Not sure it's illegal, as CA cares more about businesses than people. Try finding an atty for consult here:

    http://www.naca.net

    http://www.CaLemons.com

  2. Bryant Keith Martin

    Contributor Level 18

    Answered . CA is one of the most consumer-friendly states in the Union. The general rule is that interest in excess of 10% per annum is usurious and may not be collected in court. There are many exceptions such as for banks, pawn-brokers and paycheck loans, but I think the max is around 36%. If they want to collect, they will have to sue in CA, so the CA limit should apply. All they can recover is the principal, no interest. You should consult a consumer attorney about it.

    DISCLAIMER—This answer is for informational purposes only under the AVVO system, its terms and conditions. It is... more

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