Can a lender sue a borrower for unpaid loans with an interest rate of 20% per month?
British Columbia, Canada
The following excerpt is from Hemminger v. Davies, 2019 BCPC 206 (CanLII):
The claimant relies on a case called Eha v. Genge, 2006 BCSC 1249 in which a lender sued the borrower for unpaid loans with an interest rate of 20% per month. The trial judge found the loan transaction involved a criminal rate of interest and determined the loan agreement was void from the beginning as against public policy and therefore unenforceable. The decision was overturned on appeal.
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