Trying to find an answer through Google, not having much luck - so confusing!
The situation: there was a private loan made between two acquaintances. The loan was $30,000 principal, with $12,000 in agreed-upon total interest. The loan was to be outstanding for 8 months before repayment started. Depending on how you measure the interest percent, it's 40% (on 8 months) or 60% (across the year). Those percentages might be calculated the wrong way, but it's definitely way above the 10% cap I saw online from the CA constitution.
My question: does that 10% usury cap from the CA constitution apply to this kind of private loan? If so, are there any remedies to get out of the outrageous interest, or any penalties on the person who lent the money?
Any insight or links would be much appreciated.