Involved in a business dispute? Call Rokita Law! Schedule a consultation today to see how our team can help you navigate the complex world of business litigation.Īttorney Advertising Material by Rokita Law, P.C. Don’t take on tough business litigation alone – involve the help of an attorney who knows how to get results. If you’re looking for help navigating through any legal disputes involving your business or property, call upon the trusted name of Rokita Law today! Our team will be more than willing to assist you every step of the way. As an experienced litigator, Amanda has a dynamic approach to representing clients and handling her cases. At Rokita Law, our experienced team commits to offering you the best possible service, assuring you that your case is in good hands and allowing you to rest assured. – a Los Angeles-based law firm with experience in financial services TRUSTED BUSINESS LAWYER IN LOS ANGELESĪmanda Rokita’s expertise, knowledge, and experience in business litigation assure you that she handles your legal matters with the utmost care. For more information on California usury law or assistance with legal matters, contact Rokita Law, P.C. Understanding who is exempt from these laws and what Article 15 entails can help you avoid legal issues and maintain compliance. In conclusion, if you are a lender or business owner in California, it’s essential to be informed about the state’s usury laws. Stay Compliant with California’s Usury Laws: Important Insights for Lenders and Business Owners. Violations of the usury law can result in penalties or even criminal charges. However, it’s important for businesses to understand the law to ensure compliance. This law applies to all loans and forbearances of money, goods, or things in action.Ĭalifornia’s usury laws aim to protect consumers from predatory lending practices. It sets a maximum interest rate of 10% per year that lenders can charge on loans. What is Article 15 of the California Constitution? | california constitutionĪrticle 15 of the California Constitution addresses California’s usury law. The amount of interest these loans can charge depends on the size of the loan. Small loans – Small loans of $2,500 or less may be subject to different usury laws. However, the Department of Business Oversight must license and regulate these lenders.Ĥ. These include banks, credit unions, finance lenders, and payday lenders. Licensed lenders – The state of California licenses some lenders, enabling them to charge higher interest rates. They can charge interest rates that are legal in the state where they are based.ģ. Federal credit unions – Federal credit unions are also exempt from California usury laws due to federal preemption. They can charge interest rates that are legal in the state where they are based.Ģ. National banks – National banks are exempt from California’s usury laws due to federal preemption.
Under California law, there are several exemptions to the usury law. Who is Exempt from California Usury Laws? | california constitution Some loans and lenders are not subject to California’s usury laws. However, there are some exemptions to this rule. It states that no person may charge a higher rate of interest than 10% per year on any loan or forbearance of money, goods, or things in action. Article 15 of the California state Constitution sets the maximum rate of interest that California usury law can charge. Usury is the practice of charging excessive interest rates on loans. Understanding California’s Usury Laws: Key Regulations for Business Owners and LendersĪs a business owner or lender in California, it’s important to understand California’s usury laws to ensure compliance and avoid legal trouble.