Can I Sue for a Usurious Loan? Effective Legal Options for Overcharged Borrowers in Florida

Taking out a loan is often a necessary step in life—whether it’s to buy a home, start a business, or simply make ends meet during tough times. But what happens when a lender charges you an outrageous interest rate that seems way over the line?  

In legal terms, excessively high interest rates are known as usurious rates. If you find yourself being charged rates that feel exploitative, you might wonder: Can I sue for this? The answer is yes, and this blog post will walk you through your legal options if you’ve been overcharged by a lender. 

What is a Usurious Loan? 

A loan is considered usurious if the interest rate charged is above the legal limit set by the state. In Florida, usury laws are in place to protect borrowers from predatory lending practices. If a lender charges an interest rate above the state’s legal limit, they may be violating Florida’s usury laws. 

Here’s a quick breakdown of the interest rate limits in Florida: 

• For loans up to $500,000: The maximum allowable interest rate is 18% per year. 

• For loans over $500,000: The maximum allowable interest rate is 25% per year. 

For more information on Florida’s Usury Loan Law, click here. If a lender charges you more than these rates, they could be in violation of Florida’s usury laws, and you may have grounds to take legal action. 

What Legal Options Do I Have if I’ve Been Overcharged? 

If you suspect that you’ve been charged a usurious interest rate, you do have legal recourse. If you choose to file a lawsuit based upon a usurious loan, here are the main options available to you: 

1. Seek a Refund for Overpaid Interest

If you’ve already made payments on a usurious loan, you may be entitled to a refund of the excessive interest you paid. Under Florida law, any person willfully violating Florida’s Usury Loan Laws shall forfeit the entire interest charged or contracted to be charged. 

2. Seek Your Actual (and Potentially Punitive) Damages

In some cases, borrowers can file a lawsuit against the lender seeking damages for the usurious loan. If a lender knowingly violated Florida’s usury laws, they could be liable to pay damages beyond just a refund of interest. Florida law even allows for punitive damages in cases where the lender acted with clear intent to deceive or exploit the borrower. 

3. Void the Loan Agreement

If the usurious interest rate is extreme (often more than twice the legal limit), Florida law allows the court to declare the loan agreement void. This means that you would no longer owe any remaining balance on the loan. Instead, any payments you’ve made could be returned to you, and the lender loses the right to collect any further payments. 

4. Seek Recovery of Your Attorney’s Fees

In some situations, the loan agreement itself provides for recovery of attorneys fees for the prevailing party. If this is the case, the usurious nature of the agreement will not prohibit you from recovering your fees in a lawsuit you bring, allowing consumers to protect their interests while still financially protecting themselves. 

Why It’s Important to Take Action Against Usurious Loans 

Usurious loans aren’t just a financial burden—they’re often part of a broader predatory lending practice that harms countless consumers. By taking action against lenders who violate usury laws, you’re not only fighting for your own rights but also contributing to a fairer lending environment. 

High-interest loans can lead borrowers into a cycle of debt, making it nearly impossible to repay the loan in full. By standing up against predatory lending, you’re helping to set a precedent that can protect other borrowers from falling into similar traps. 

How Ayala Law Can Help 

At Ayala Law, we are passionate about consumer protection and have extensive experience handling cases involving usurious loans and predatory lending practices. If you believe you’ve been overcharged on a loan, we’re here to help you explore your legal options. Our team can evaluate the terms of your loan, advise you on the best course of action to help correct an unjust loan arrangement. 

Contact one of our experienced attorneys at 305-570-2208. You can also email our founding partner, Eduardo Maura, directly at eduardo@ayalalawpa.com.   

We at Ayala Law PA are dedicated to helping those in legal need. Please don’t hesitate to schedule a case evaluation with us online here.  

[The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case].