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April 29, 2019

Sixth Circuit Blocks Attempt to Collect Lawsuit Loan With 79 Percent Interest

The Sixth Circuit Court of Appeals denied a lawsuit lender’s attempt to collect the $1.5 million it says a Kentucky man owes them from four loans stemming from a 2008 lawsuit, Bloomberg Law reports.

The loans created an effective annual interest rate of 79 percent, which the court said violated Kentucky’s usury laws. The loans gave the plaintiff a combined $30,000 at the start of the litigation in 2008. By the time the suit was resolved in 2014, the lender, Prospect Funding Holdings LLC, said the man owed $340,405. In March 2017, the balance totaled $1.5 million.

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