Are there any federal laws limiting the amount of interest a bank or finance company can charge an individual?

for a loan? If they wanted could they charge 99% interest per year?

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Answer:
No that’s governed by the states. Some states have much more lenient laws allowing higher interest rates. This is the reason why you will find quite a few Credit Card companies based in Says such as South Dakota or Delaware.

By the way there are already companies that fall under the “Payday” type of loan that have interest rates above 100%.

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Answer:
It depends on a state by state basis. Many states do have a usury law in place which is called a “ceiling rate”. But many states don’t and is “whatever is reasonable”

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Answer:
In the United States, usury laws are state laws that specify the maximum legal interest rate at which loans can be made. Congress has opted not to regulate these rates.

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Answer:
Their is something called usery where they can't charge more or else they’ll be commiting a crime, something like 50% or 25% on a week long loan.

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