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West Virginia Interest Rates Laws

Maybe you’ve been tempted by the allure of a new credit card and a little extra spending money or needed to make big purchases. Or maybe you’ve been faced with a bit of a financial bind, or even looked into getting a loan. Either way, these credit options can come with a high interest rate that could get you into more money trouble if you’re not careful.

Fortunately, the Mountain State has some legal protections that limit the amount of interest that a creditor can charge on credit cards, loans, and judgments. Here is a quick introduction to interest rates laws in West Virginia.

Interest Rates Laws

State interest rate laws may vary depending on the type of credit, loan, or court judgment involved. By limiting the amount of interest a creditor can legally charge, these statutes are intended to deter predatory lenders and help consumers avoid significant debt. West Virginia’s maximum interest rate is 6% without a contract, and 8% with one.

Interest Rates Laws in West Virginia

The details of West Virginia's interest rate laws are listed below.

Legal Maximum Rate of Interest

6% absent written agreement otherwise; 8% maximum contract rate

West Virginia Code 47-6-5: Legal Rate of Interest

Penalty for Usury (Unlawful Interest Rate)

Void as to all interest and debtor may recover 4 times all interest agreed to be paid with $100 minimum;

West Virginia Code 47-6-6: Usury and Usurious Contracts

If supervised lender willfully makes excess charge it is guilty of misdemeanor;

Court may award reasonable attorney's fees

West Virginia Code 46A-5-101, et seq.: Letters of Credit

Interest Rates on Judgments

10%

West Virginia Code 56-6-31: Interest on Judgments

Exceptions

Life insurer (33-13-8);

Consumer credit sales (46A-3-101);

Installment sale for business purposes; loans for business purposes (47-6-11)

While state laws offer some protection, the best way to prevent the financial pitfalls of high interest rates is to avoid credit card debt entirely. And one of the best strategies for staying out of debt is to use a credit card responsibly and pay off the entire balance as quickly as possible. If you are already in significant credit card debt, there may be some consumer protections under federal law that can help.

More Resources for Interest Rate Laws in West Virginia

State interest rate laws can be as confusing as interest rates themselves. FindLaw’s section on Usury Laws and Limits on Credit Card Interest Rates can provide you with additional articles and resources on this topic. You can also consult with a West Virginia consumer protection attorney in your area if you would like legal help regarding an interest rate matter.

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