News & Analysis as of

CA Supreme Court Usury

Allen Matkins

Supreme Court: 1934 Amendment Repeals 1918 Limitation On Compound Interest

Allen Matkins on

The same year that the Great War ended, the voters of California approved an initiative measure governing allowable interest rates. This initiative remains uncodified but West Publisher designates these statutes as Civil Code...more

Sheppard Mullin Richter & Hampton LLP

California Supreme Court Rules That Loans Not Subject To Usury Cap May Still Be Unconscionable

The California Supreme Court ruled on Monday, August 18, that an interest rate on a consumer loan in California could be deemed illegally high even if the loan is not subject to the state’s usury law. Consumer loans of...more

Goodwin

California Supreme Court Rules that Loans Can be Unconscionable Due to High Interest Rates, Despite Lack of Interest Rate Cap

Goodwin on

On August 13, 2018, the California Supreme Court answered a question certified to it by the Ninth Circuit, holding that a loan with a high interest rate can be unconscionable, even if the legislature specifically declined to...more

Womble Bond Dickinson

California Supreme Court Holds That High Interest Rates on Payday Loans Can be Unconscionable

Womble Bond Dickinson on

On August 13, 2018, the California Supreme Court in Eduardo De La Torre, et al. v. CashCall, Inc., held that interest rates on consumer loans of $2,500 or more could be found unconscionable under section 22302 of the...more

Ballard Spahr LLP

CA Supreme Court holds high-interest loans may be subject to price unconscionability attack

Ballard Spahr LLP on

Resolving an ambiguity in the California Finance Lender’s Law (CFLL), the California Supreme Court unanimously held that borrowers may use the unconscionability doctrine to challenge the interest rate on consumer loans of...more

Stinson LLP

California Supreme Court Rules that Consumer Loans Not Subject to Usury Cap May Still Be Deemed Unconscionable

Stinson LLP on

On Monday, August 13, the California Supreme Court unanimously ruled that the interest rate on a consumer loan in California can be deemed illegally high, even if the loan was not subject to the state’s usury cap....more

Mintz - Real Estate, Construction &...

California Usury Law: A Search for Clarity around Compound Interest

California usury law is addressed in multiple places: the California Constitution, statutes, case law, and initiative measures. Due to the patchwork nature of this body of law, differing interpretations and ambiguity are...more

Ballard Spahr LLP

California Supreme Court to Decide Key Finance Lender Law Usury and Unconscionability Issue

Ballard Spahr LLP on

Although the California Finance Lenders Law (the CFLL) does not limit the interest rates that may be charged on loans of $2,500 or more, Section 22302 of the law expressly states that loans made under the CFLL may be held...more

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