concept

annual percentage rate

Also known as: APR

Facts (6)

Sources

Predatory Installment Lending in the States: How Well Do ... - NCLC nclc.org National Consumer Law Center 4 facts

measurementFollowing the passage of 2024 Kan. Laws Ch. 6, the maximum APR for a $2,000 2-year loan in Kansas increased from 32% to 38%.

measurementA $500 line of credit offered by a predatory lender in Pennsylvania in 2006 charged 5.98% interest but required a $149 monthly junk fee, resulting in an actual APR of 431% if repaid over six months.

measurementFollowing the passage of 2024 Fla. Sess. Law Serv. Ch. 2024-276, the maximum APR for a $500 6-month loan in Florida increased from 48% to 52%, and the maximum APR for a $2,000 2-year loan increased from 31% to 37%.

claimUnder a Mississippi amendment (2024 Miss. Laws S.B. 2543), the 59% APR allowed by the Consumer Alternative Installment Loan Act can now be charged on loans up to $5,100, an increase from the previous $4,000 limit, with the limit to be increased annually for inflation.

Financial Ethics 101: Predatory Lending - Seven Pillars Institute 7pillarsinstitute-org.sevenpillarsconsulting.com Yuqing Li · 7 Pillars Institute Jun 18, 2024 2 facts

formulaThe Home Ownership and Equity Protection Act (HOEPA) regulates 'high-cost loans' where the annual percentage rate (APR) and fees exceed the yield on comparable Treasury securities plus 8%.

measurementA loan is defined as predatory if the annual percentage rate (APR) at consummation exceeds the yield on comparable Treasury securities plus 8% for first-lien loans or 10% for subordinate-lien loans.