Category Archives: Unconscionability

Court Finds Usurious Late Fees Unenforceable

Though usury caps are only applicable to loan transactions, courts often reference usury rates when determining the reasonableness of fees charged on amounts due. A¬†fee that significantly exceeds the applicable usury rate may be found to be an unenforceable penalty … Continue reading

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No Bank Liability for Usurious Payday Loan Debits

Costoso v. Bank of Am., N.A., 2015 U.S. Dist. LEXIS 22023 (E.D.N.Y. Feb. 24, 2015) A class action suit brought by a New York bank customer against Bank of America regarding ACH debits from her account by Payday Lenders for … Continue reading

Posted in Federal Court, NACHA, New York, Unconscionability | Comments Off on No Bank Liability for Usurious Payday Loan Debits

3,600% Interest Rate Unconscionable and Against D.C. Public Policy

Adduci v. Krane, 2015 U.S. Dist. LEXIS 13078 (D.D.C. Feb. 4, 2015) A business loan of $100,000 required a “Loan Exit Fee” of $900,000 be paid at the end of a three month term. ¬†Unsurprisingly, Magistrate Judge Alan Kay found … Continue reading

Posted in D.C., Federal Court, Interest Calculation, Unconscionability | Comments Off on 3,600% Interest Rate Unconscionable and Against D.C. Public Policy