Supreme Court of California

Held that an unduly oppressive interest rate on consumer loans of $2,500 or more can render the loans unconscionable. Answering a question certified to it by the Ninth Circuit, the California Supreme Court held that although California sets interest rate caps only on consumer loans less than $2,500, this fact does not mean that a court may never declare unconscionable an interest rate on a loan of $2,500 or more. In the federal court lawsuit, the defendant is a lender that provides consumer loans to high-risk borrowers at annual interest rates up to 100 percent or more.

Appellate Information

• Published 2018/08/13

Judges

• Cuellar

Court

• Supreme Court of California

Counsel