I have bought a car from a lot 2 years ago, we did not have the credit to buy it so the owner gave us a personal loan. there was no contract signed by anyone just that we would pay 266 a month till it is payed off. We owed 4697.00 and made 20 payments we called to see what would be the pay off and he told us 2100.00! we asked what is the rate and he said we normally do them at 18% so we did the math ourselves and the balance should be 177.00 so we sent him a check and a letter explaining our findings (This must be a personal loan because he sold the lot and we are still making payments to him personally). Can he charge what ever he wants or is he under Kentucky Statutes. Section 360.010 prescribes the legal rate of interest?After more phone calls he said yes there was a contract, of 30 payments at 266, I don't remember it but it could be. that would make the interest rate 46% did he make an illegal contract? If I understand it right Isn't the max ever is suppose to be 19%. Does section 360.020 come into effect also?