If you are doing the interest calculation correctly the the rate is almost certainly illegal. You should consult an attorney. Many attorneys, such as this office, Houston and Totaro. give free consultations. You should call an attorney of your choice.
The usury laws in NJ don't permit interest to be charged at the rate you suggest. You need to consult a lawyer immediately. Use the AVVO fins a lawyer feature to get one in your area who deals with these issues.
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The usury rate in New Jersey is 16% (N.J.S.A. § 31:1-1) and anything above 30% is a criminal offense (N.J.S.A. § 2C:21-19).
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