Houston Consumer Credit Lawyers – Usury/Interest Law
Although the concept of usury – also known as interest law – has existed since ancient times, many modern consumers are unaware that it remains a critical component of lender liability law, consumer law, corporate law and even real estate law.
For lenders, it is critical to understand which interest practices may constitute usury and how to avoid running afoul of existing state and federal statutes and regulations. For consumers, it is critical to recognize when a lender may be engaging in usury and understand which avenues of recourse may be available.
Usury, Interest Law and Lender Liability in Houston and Galveston
In Texas, most discrete loan types have “usury rates.” Basically, a given loan’s usury rate is the maximum legally allowable interest rate. A lender that issues a loan with an interest rate greater than the usury rate for that type of loan may be violating the law.
Usury rates vary widely by loan type. Examples include:
- Commercial loans less than $250,000: Base rate of 18 percent and inflation-adjusted rate of 24 percent
- Commercial loans greater than $250,000: 28 percent
- Vehicle loans: 27 percent
- Pawn shop loans: 240 percent
- Business invoices without written contracts: 6 percent
Consumers and business owners who believe that their lenders are in violation of state usury laws should consult with an experienced credit attorney.
Work with a Seasoned Houston Business Attorney
At the Law Offices of Lambert & Jakob, we firmly believe in the sanctity of the lender-borrower relationship. To ensure that state and federal business laws are respected, both lenders and borrowers must uphold certain standards of conduct and observe certain responsibilities. Failure to do so can lead to a host of adverse outcomes, including civil disputes, commercial litigation and recriminations.
Our principal attorneys have more than four decades of experience in various credit law matters. Moreover, corporate attorney Henry Jakob spent years in successive auditing, accounting and management consulting roles prior to founding the Law Offices of Lambert & Jakob. Accordingly, we are uniquely positioned to understand the competitive pressures facing commercial and consumer lenders. At the same time, we recognize that lenders are duty bound to follow all applicable laws and treat their clients fairly. This is why we commit to representing consumers and small business owners affected by usury and other lender liability issues.
Whether you are a Sugar Land consumer who believes your lender to be in violation of interest laws or a Pearland business owner who wishes to know more about your financial rights, we would appreciate the privilege of evaluating your case and providing appropriate guidance.
Contact Us Today
If you would like additional information about the credit law services our Houston credit lawyers can provide or wish to schedule a free, no-obligation consultation on issues related to usury and other consumer law or business planning matters in Waller, Fort Bend and Harris County, please fill complete the online contact form or call (713) 640-5700 at your convenience.