Sunbelt Credit Corporation of Florida Sunbelt Credit Charged usurious interest rate Pensacola, Florida
Sunbelt Credit made my daughter a loan and secured it by taking her car as collateral. Normally, under most lending transactions in Florida, the legal usury rate would be 18%. However, since Sunbelt Credit took her car as collateral it caused the loan to fall in the category of a "car loan" and therefore the legal usury rate is 30%. Sunbelt Credit charged my daughter 30.71% interest making it an illegal rate of interest. Since this was a standardized form, I wonder if all of Sunbelt Credit's customers are being charged an illegal rate of interest. Florida law carries civil and criminal penalties for violation of the usury law. Florida's Department of Finance investigative department is investigating this matter.
2 Updates & Rebuttals
Ashley
springfield,Missouri,
U.S.A.
possibly legal
#3Consumer Comment
Thu, April 21, 2011
I am no lawyer, but a quick google search on usury shows that the supreme court ruled that banks do not follow the usury laws of the state the loan is issued in, but have to follow the usury laws of the state they are headquartered in. In this case sunbelt bank is based out of south carolina, and an interest rate that high is legal in south carolina,
Jim
Anaheim,California,
U.S.A.
Possibly
#3Consumer Comment
Thu, April 21, 2011
The only thing I do know is that certain kinds of loans (like credit card loans) are exempt from all usury laws. Since this company makes credit card loans, their argument would be that it is exempt from the usury laws of Florida. I think their case wobbles a bit. I'd push it; don't let Florida AG take their time on it... Best of luck to you.