This review list is being supplied to you in order to inform you about the document in question and to assist you in preparing it for submission. Because usury rates are determined by state law, the actual rates may differ. In the event that you have signed such an obligation, whether in the form of a Note or a payment agreement underpinning another purchase, such as a piece of furniture or equipment, this Notice is the first step toward obtaining relief. The majority of parties to high-interest loans are highly aware of usury concerns and will typically withdraw promptly if they are wrong. If this is not the case, usury lenders or sellers who utilize usury rates to fund such transactions will be treated extremely adversely by the courts.
- Make several copies of the document. Send a letter and a fax to the lender. Keep a copy of this document for your own records.
Usury Notice
Usury Notice
_________________________
_________________________
_________________________Notice of usurious interest rate and intention to seek relief
Dear _________________________:
This is to advise you that pursuant to the laws of _______________________, the promissory note which was executed on __________________________, in the original principal amount of $______(____________________ & ______/100 dollars) violates the usury laws and that legal action will be taken to avoid the usury and to obtain the following relief:
_____________________________________________________________________
Dated: _________________________________________
________________________________
_________________________ By Executor of Promissory or Other Note of Obligation
Usury Notice
Review ListThis review list is provided to inform you about this document in question and assist you in its preparation. Usury rates are dictated by state law so the actual rates vary. If you have signed such an obligation, whether as a Note or payment agreement underlying another purchase, such as a piece of furniture or equipment, this Notice is your first step in getting relief. Most parties involved in high interest loans are acutely aware of usury issues and will, if wrong, generally back off immediately. If not, the courts look very unfavorably upon usury lenders or sellers who use usury rates to finance those sales.
1. Make multiple copies. Mail and fax to the lender. Keep a copy for your own records.
Frequently Asked Questions
What is a usury notice?
A usury notice is a formal notification sent to a lender or note holder stating that a promissory note or other obligation violates state usury laws. It declares the sender's intention to seek legal relief to avoid the usurious interest. The notice is typically the first step in challenging an illegally high interest rate.
When should I send a usury notice?
You should send a usury notice if you have signed a promissory note or payment agreement that you believe charges an interest rate exceeding the legal limit in your state. The notice is your first step in getting relief from the usurious obligation. It is advisable to act promptly upon discovering the violation.
What information must be included in a usury notice?
A usury notice should include the date the promissory note was executed, the original principal amount, and a statement that the note violates the usury laws of the relevant state. It must also specify the relief sought and be dated and signed by the sender or their representative. The provided template includes blank spaces for these details.
Who can send a usury notice?
The party who signed the promissory note or payment agreement, or their legal representative, can send a usury notice. The template indicates it may be sent by the executor of the promissory note or other note of obligation. This could include an executor of an estate if the original signer is deceased.
What relief can I seek with a usury notice?
The relief sought depends on state law and the specific circumstances, but may include avoiding the usurious interest, recovering excess interest paid, or other remedies. The notice itself does not guarantee relief; it is a formal demand that may lead to legal action. The template provides a blank space to specify the relief being sought.
Are usury rates the same in every state?
No, usury rates are dictated by state law, so the actual limits vary from state to state. What is considered usurious in one state may be legal in another. Therefore, it is essential to verify the specific usury laws of your state when preparing a usury notice.
What happens after I send a usury notice?
After sending a usury notice, the recipient may respond by disputing the claim, negotiating a resolution, or taking no action. If the matter is not resolved, the sender may proceed with legal action to obtain the relief sought. The notice serves as evidence of the sender's intent to enforce their rights under usury laws.
Can a usury notice be used for any type of loan or credit agreement?
A usury notice can be used for various types of obligations, including promissory notes and payment agreements underlying purchases such as furniture or equipment. The key is that the obligation charges interest that exceeds the state's usury limit. The template is designed to be adaptable to different note or obligation types.
Is a usury notice a legal document?
Yes, a usury notice is a legal document that formally asserts a violation of usury laws and states an intention to seek relief. It should be prepared carefully and may be used in subsequent legal proceedings. It is advisable to consult with an attorney to ensure it complies with applicable laws.
What should I do if I receive a usury notice?
If you receive a usury notice, you should review the allegations and the underlying promissory note to determine whether the interest rate indeed violates state usury laws. You may need to consult with an attorney to understand your rights and obligations. Ignoring the notice could lead to legal action, so a timely response is important.
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