Beneficial New York, Inc. v. Stewart

OPINION OF THE COURT

Herbert Kramer, J.

*798Does the imposition of an interest rate of 25% on a small loan invariably and necessarily violate the State’s usury provisions?

In November of 2004, defendant borrower contracted with the plaintiff for a revolving line of credit with a maximum credit limit of $5,000 and an agreed upon annual interest rate of 25%. After making some 27 payments on a monthly or bimonthly basis from the inception of the loan until August of 2007, the defendant still owed the plaintiff the selfsame $5,000 that he had initially borrowed. Since then, the plaintiff has recorded no…