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New York Interest Rates Laws

While many jurisdictions set statutory limits on interest rates, they are not always enforceable. Why? Consumers often  agree to rates higher than the limit and in doing so waive the protections. This often renders legal interest rate limits to  little more than general guidelines. In any event, New York's interest rate limit is 16 percent.

The basics of New York interest rates laws are listed in the table below. See Consumer Protection Resources for more information.

Legal Maximum Rate of Interest 16% (Gen. Oblig. §5-501(1)); Banking §14-a)
Penalty for Usury (Unlawful Interest Rate) Usurious notes void (Gen. Oblig. (§5-511(1)); borrower may recover any amount in excess over legal rate (Gen. Oblig. §5-513); if bank, savings and loan, or trust company, interest forfeited and recovery of twice interest paid (Gen. Oblig. §5-511(1))
Interest Rates on Judgments 9% (Civ. Prac. L. & R. §§5003, 5004)
Exceptions See Gen. Oblig. §§5-501, et seq.; debit balance on customer accounts with a broker or dealer (Gen. Oblig. §5-525)

Note: State laws are constantly changing -- contact a New York consumer protection attorney or conduct your own legal research to verify the state law(s) you are researching.

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