The rate of interest a lender may legally charge borrowers is dictated by state law, although these limits typically have several exceptions. While most states provide a single percentage limit for interest rates, they often only apply to transactions without a contract -- which could be as complex as signing a mortgage document or as simple as clicking on an online agreement. It's also important to mention the U.S. Supreme Court's 1978 Marquette National Bank v. First of Omaha Corp. ruling that national banks may charge the highest rate allowed in their home state, regardless of where the borrower lives. And even local banks are permitted to "import" higher interest rate limits from other states, such as Delaware.
A Brief Overview of Statutory Interest Rate Limits in Idaho
The state of Idaho imposes a 12 percent limit on interest rates in most cases, although credit cards and other debt products imported from other states may have much higher rates.
|Legal Maximum Rate of Interest||
12% unless express contract (§28-22-104), applicable to:
|Penalty for Usury (Unlawful Interest Rate)||Plaintiff may recover amount of actual injury (§6-807, 1602)|
|Interest Rates on Judgments||5.125% plus annual average yield on U.S. Treasury securities as determined by Idaho state treasurer (§28-22-104)|
Note: State laws are subject to change at any time through the enactment of newly signed legislation or voter-approved ballot initiatives, decisions from higher courts, and other means. While we strive to ensure the accuracy of these pages, you may also want to contact an Idaho consumer protection attorney or conduct your own legal research to verify the state law(s) you are researching.
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Idaho Interest Rates Limits: Related Resources
Contact a qualified attorney.