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Maximum interest rates

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Reference no: EM131655643

We discuss adhesion contracts this week. These are contracts in which a stronger party forces the weaker party to adhere to the stronger party's terms--take it or leave it. Many states have usury limits. These are limits on how much interest can be charged on finance contracts. Some states such as New Hampshire and South Dakota have eliminated usury laws, letting the marketplace decide how much interest a lender will charge.

Do you believe that maximum interest rates should be imposed by state laws? Or do you believe that the marketplace should determine interest rates?

Reference no: EM131655643

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