Freitas v. Geddes Savings & Loan Ass'n

I would reverse and grant judgment to plaintiffs because defendant charged them an unlawful rate of interest, not through excusable mistake, but knowingly. Having established that, plaintiffs had no obligation to go further and prove that defendant did so “clandestinely” with the specific intent to violate the usury laws or that its conduct amounted to a “subterfuge” or “ruse” to do so.

Analysis starts with the statute which prohibits savings and loan institutions from “knowingly taking, receiving, reserving, or charging * * * interest * * * at a rate greater than * * * authorized by law”…