California Court Finds Real Estate Loan Usurious

California Constitution art. XV, § 1, sets usury limits on interest. California Civil Code § 1916.1, provides an exception for loans made or arranged by real estate brokers. California Civil Code 1916-3(a) allows victim of usury to recover treble damages. Lender corporation made a number of loans to Borrower at rates above the usury limits, but the paperwork stated Lender was a licensed real estate broker. Borrower sued Lender for usuary when Borrower learned Lender was not a licensed broker. Held: loans were usurious, judgment for Borrower for excess interest paid over usury limits.
Contributor
Robin Mashal
Los Angeles, California
Commercial Litigation
(310) 286-2000

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I am a litigation lawyer, licensed to practice law in the State of California. You can reach me by phone at (310) 286-2000.