State Decisions and Issues

Tennessee: Usury Laws & Commercial Code

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Additional details about Tennessee’s laws limiting interest rates, and links to relevant code sections, can be found in the following table.

Legal Maximum Rate of Interest 10% (§47-14-103)
Penalty for Usury (Unlawful Interest Rate) Contract unenforceable; if found unconscionable, lender must refund charges, fees, and commission fees and successful plaintiff may recover reasonable attorney’s fees (§47-14-117); willful collection is a Class A misdemeanor (§47-14-112)
Interest Rates on Judgments 10% or at contract rate (§47-14-121)
Exceptions Installment loans (§45-2-1106); loans under $1000; (§47-14-104); savings and loans (§45-3-705); single payment loans §(47-14-104)

Tennessee Commercial Code
Title 47 – Commercial Instruments And Transactions
Chapter 14 – Interest Rates Generally

State Decisions and Issues

Tennessee: Usury Laws & Commercial Code

Additional details about Tennessee’s laws limiting interest rates, and links to relevant code sections, can be found in the following table.

Legal Maximum Rate of Interest 10% (§47-14-103)
Penalty for Usury (Unlawful Interest Rate) Contract unenforceable; if found unconscionable, lender must refund charges, fees, and commission fees and successful plaintiff may recover reasonable attorney’s fees (§47-14-117); willful collection is a Class A misdemeanor (§47-14-112)
Interest Rates on Judgments 10% or at contract rate (§47-14-121)
Exceptions Installment loans (§45-2-1106); loans under $1000; (§47-14-104); savings and loans (§45-3-705); single payment loans §(47-14-104)

Tennessee Commercial Code
Title 47 – Commercial Instruments And Transactions
Chapter 14 – Interest Rates Generally

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