Idaho Usury Laws
Idaho has some very generalized laws when it comes to the regulation of permissible interest rates that can be charged within that state. While not actually classified as usury limitations per se, the statutes and regulations that presently are in effect in Idaho have the same effect and function of usury laws that are in place in most other states in the country at this point in time.
The legal interest rate that has been established in Idaho for most types of loans involving consumers has been set at 12%. In a related vein, the interest rate that has been established for judgments in civil suits in Idaho is 5% above the U.S. Treasury Securities rate.
Usury has long been the subject of literature and political debate through the centuries. For example, in Shakespeare’s “The Merchant of Venice,” written in the 16th century, it was necessary for the character Shylock to do things before he could be redeemed and go onward to Heaven. First, he had to convert to Christianity. Second, Shylock has to forsake usury before he could gain admission to Heaven. On many levels, the regulation of interest rates has had a foundation in religious traditions.
Of course, the proscriptions against usurious lending practices in Idaho are not founded upon conceptualizations of Heaven and Hell. Rather, lending practices are governed by the provisions set forth in Title 28 of the Idaho Code. The Title generally deals with what are permissible commercial transactions in Idaho, sets forth how these transactions are to be carried out. This includes establishing what are considered legal lending practices in the state.
As a matter of law, courts in Idaho take a narrow view of what are acceptable interest rates in personal, consumer loans. For example, if a case becomes before a court of competent jurisdiction in the State of Idaho involving a personal or consumer loan agreement that includes provisions for interest rates beyond what is legally permitted in the Idaho Code (as mentioned previously), a court generally will strike down the entire loan agreement as being illegal and void -- as being wholly enforceable.
The materials presented to you in this article are for informational purposes only. Nothing in this article should be construed as providing to you legal advice. In addition, while we make every effort to keep the information in this article up to date, laws do change. Therefore, we cannot always guarantee completely the efficacy of what is contained in this article.