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.
The content of the this submission is intended to provide general information on the topic presented, and is offered with the understanding that the author is not rendering any legal or professional services or advice. This submission is not a substitute for legal advice. Should you require such services, retain competent legal counsel.
Id this is true it is probably illegal but the "agreement" might resemble an investment rather than a loan so the laws on interest rate not apply.
Need to review the written agreement to see what your rights are here
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).
If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education purposes only. It neither creates an attorney-client relationship nor provides legal guidance or advice. The answer is based on the limited information provided and the answer might be different had additional information been provided. You should consult an attorney.