Source: https://code.dccouncil.us/dc/council/code/titles/28/chapters/33/
Timestamp: 2020-07-11 21:18:41
Document Index: 518030412

Matched Legal Cases: ['§ 28', '§ 28', '§ 28', '§ 28', '§ 28', '§ 28', '§ 28', '§ 28', '§ 28', '§ 28', '§ 28', '§ 28', '§ 28', '§\u20026621', '§ 1', '§ 2', '§ 9', '§ 2', '§ 2', '§\u200228', '§\u200228', '§ 2', '§ 31', '§ 31', '§ 32', '§ 32', '§ 31', '§ 32', '§ 2', '§ 26', '§ 32', '§ 26', '§ 1', '§ 2', '§ 25', '§\u200228', '§\u200228', '§ 28', '§ 1', '§\u200228', '§\u200228', '§\u200228', '§\u200228', '§\u200228', '§\u200228', '§\u200228', '§\u200228', '§\u20021701', '§\u20021601', '§ 3', '§ 3', '§ 3', '§ 3', '§ 27', '§\u200228', '§\u200228', '§ 28', '§ 28', '§ 28', '§\u20021813', '§\u2002407', '§ 1', '§ 27', '§\u200228', '§\u200228', '§\u2002711', '§ 1', '§\u2002714', '§ 1', '§\u200228', '§ 28', '§\u200228', '§ 28', '§ 42', '§ 4', '§ 27', '§\u200228', '§ 22', '§ 4', '§ 285', '§\u200228', '§ 22', '§\u2002285', '§ 4', '§ 27', '§\u200228', '§\u20021001', '§ 3', '§ 29', '§\u200229', '§\u200229']

D.C. Law Library - Chapter 33. Interest and Usury.
§ 28–3303. Usury defined.
§ 28–3304. Action to recover usury paid.
§ 28–3305. Unlawful interest credited on principal debt.
§ 28–3306. Parties compelled to testify.
§ 28–3307. Council of the District of Columbia authorized to exempt certain mortgages and loans.
§ 28–3308. Finance charge on direct installment loans.
§ 28–3309. Council of the District of Columbia authorized to exempt certain loans, and to change rates of interest.
§ 28–3310. Consumer protections.
§ 28–3311. Definition of interest.
§ 28–3312. Unlawful practices.
§ 28–3313. Penalties.
§ 28–3314. Right of action.
§ 28–3315. Exemption of institutions of higher learning from usury law.
(a) The rate of interest in the District upon the loan or forbearance of money, goods, or things in action in the absence of expressed contract, is 6% per annum.
(b) Interest, when authorized by law, on judgments or decrees against the District of Columbia, or its officers, or its employees acting within the scope of their employment, is at the rate of not exceeding 4% per annum.
(c) The rate of interest on judgments and decrees, where the judgment or decree is not against the District of Columbia, or its officers, or its employees acting within the scope of their employment or where the rate of interest is not fixed by contract, shall be 70% of the rate of interest set by the Secretary of the Treasury pursuant to section 6621 of the Internal Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2744; 26 U.S.C. § 6621), for underpayments of tax to the Internal Revenue Service, rounded to the nearest full percent, or if exactly 1/2 of 1%, increased to the next highest full percent; provided, that a court of competent jurisdiction may lower the rate of interest under this subsection for good cause shown or upon a showing that the judgment debtor in good faith is unable to pay the judgment. In the case of the judgments entered prior to the effective date of the Consumer Credit Interest Rate Amendment Act of 1981, that are not satisfied until after the effective date of the Consumer Credit Interest Rate Amendment Act of 1981, the rate of interest thereon shall be the rate of interest prescribed in this subsection from the effective date of the Consumer Credit Interest Rate Amendment Act of 1981, until the date of satisfaction.
(Aug. 30, 1964, 78 Stat. 765, Pub. L. 88-509, § 1; Mar. 10, 1982, D.C. Law 4-70, § 2, 28 DCR 5236; June 4, 1982, D.C. Law 4-112, § 9, 29 DCR 1687; Dec. 16, 1987, D.C. Law 7-61, § 2, 34 DCR 7089; Mar. 9, 1988, D.C. Law 7-82, § 2, 34 DCR 8117.)
1981 Ed., § 28-3302.
1973 Ed., § 28-3302.
This section is referenced in § 2-359.09, § 31-1101, § 31-4450, § 32-509, and § 32-1204.
Domestic life companies, merger or consolidation, dissenting shareholders, see § 31-4450.
Family and medical leave, complaints, review, see § 32-509.
Government procurement, remedies, interest, see § 2-359.09.
Money lenders, interest and charges, limitations, see § 26-901 et seq.
Parental leave, administrative enforcement procedure, relief, see § 32-1204.
The “Consumer Credit Interest Rate Amendment Act of 1981”, referred to throughout subsection (c), is D.C. Law 4-70.
If a person or corporation contracts in the District,
(1) verbally, to pay a greater rate of interest than 6% per annum, or
(2) in writing, to pay a greater rate than is permitted under section 28-3301, 28-3308, under Chapter 36 of this subtitle, or under § 26-301 et seq., the creditor shall forfeit the whole of the interest so contracted to be received.
This section does not affect sections 26-901 to 26-912 .
(Aug. 30, 1964, 78 Stat. 675, Pub. L. 88-509, § 1; Dec. 17, 1971, 85 Stat. 665, Pub. L. 92-200, § 2; May 12, 1998, D.C. Law 12-111, § 25(a), 45 DCR 1782.)
1981 Ed., § 28-3303.
1973 Ed., § 28-3303.
Institutions of higher education, pleading usury as a defense, see § 28-3315.
Sections 26-901 to 26-912, referred to in the last paragraph of this section, refer to the Act of Feb. 4, 1913, as amended, and as translated to the 2001 edition. D.C. Law 18-378 amended and enacted into law Title 29.
If a person or corporation in the District directly or indirectly takes or receives a greater amount of interest than is declared by this chapter to be lawful, whether in advance or not, the person or corporation paying the same may within one year after the date of payment sue for and recover the amount of the unlawful interest so paid.
(Aug. 30, 1964, 78 Stat. 676, Pub. L. 88-509, § 1.)
1981 Ed., § 28-3304.
1973 Ed., § 28-3304.
In an action upon a contract for the payment of money with interest at a rate forbidden by law, any payment of interest that may have been made on account of the contract is deemed to be payment made on account of the principal debt; and judgment shall be rendered for no more than the balance found due after deducting and properly crediting the interest so paid. A bona fide indorsee of negotiable paper purchased before due is not affected by any usury exacted by a former holder of the paper unless he had notice of the usury before his purchase.
1981 Ed., § 28-3305.
1973 Ed., § 28-3305.
When in an action to recover a debt the defendant claims that payment of unlawful interest on the debt has been made to the plaintiff or those under whom he claims, which the defendant is entitled to have credited on the principal of the debt, the plaintiff or the party who received the unlawful interest may be examined as a witness to prove the payment, and may not be excused from testifying in relation thereto. A creditor who is made defendant in a proceeding for discovery as to payments of unlawful interest made to him may not be excused from answering.
1981 Ed., § 28-3306.
1973 Ed., § 28-3306.
1981 Ed., § 28-3307.
1973 Ed., § 28-3307.
The National Housing Act, referred to in the first sentence of this section, is codified in 12 U.S.C. § 1701 et seq.
(a) On a loan (other than a loan directly secured on real estate or a direct motor vehicle installment loan covered by Chapter 36 of this subtitle) to be repaid in equal or substantially equal monthly or other periodic installments, including a loan obtained by using a check, credit card, or other device to access a line of credit, any federally insured bank or savings and loan association doing business in the District of Columbia may contract for and receive interest at the rate permitted under this chapter or, in lieu of such interest, a finance charge, which if expressed as an annual percentage rate, does not exceed a rate of 24% per annum on the unpaid balances of the principal. This section does not limit or restrict the manner of contracting for the finance charge, whether by way of discount, add-on, or simple interest, so long as the annual percentage rate of the finance charge does not exceed that permitted by this section.
(1) the finance charge may be calculated on the assumption that all scheduled payments will be made when due, and
(2) except as provided in subsection (c), upon prepayment in full of the unpaid balance of a precomputed direct installment loan, refinancing, or consolidation, an amount not less than the unearned portion of the finance charge calculated according to this section shall be rebated to the debtor. If the rebate otherwise required is less than $1, no rebate need be made.
(c) Upon prepayment in full of such direct installment loan other than a refinancing or consolidation, whether or not precomputed, the lender may collect or retain a minimum charge within the limits stated in this section if the finance charge earned at the time of prepayment is less than any minimum charge contracted for. The minimum charge may not exceed the smaller of the following: (1) the amount of the finance charge contracted for, or (2) $5 in a transaction which had a principal of $75 or less, or $7.50 in a transaction which had a principal of more than $75.
(d) The unearned portion of the finance charge is a fraction of the finance charge of which the numerator is the sum of the periodic balances scheduled to follow the computational period in which the prepayment occurs, and the denominator is the sum of all periodic balances under either the related loan agreement or, if the balance owing resulted from a refinancing or a consolidation, under the related refinancing agreement or consolidation agreement.
(e) As used in this section, “finance charge”, and “annual percentage rate” shall have the respective meanings under the provisions of the Truth-in-Lending Act (82 Stat. 146 et seq.; 15 U.S.C. § 1601 et seq.) and the regulations and interpretations thereunder; and “federally insured bank or savings and loan association” means an insured bank as defined in section 3 of the Federal Deposit Insurance Act or an “insured institution” as defined in section 401 of the National Housing Act.
(Dec. 17, 1971, 85 Stat. 665, Pub. L. 92-200, § 3; Nov. 20, 1979, D.C. Law 3-38, § 3, 26 DCR 2183; Mar. 10, 1982, D.C. Law 4-70, § 3, 28 DCR 5236; Mar. 14, 1984, D.C. Law 5-62, § 3, 31 DCR 114; Apr. 9, 1997, D.C. Law 11-255, § 27(e), 44 DCR 1271.)
1981 Ed., § 28-3308.
1973 Ed., § 28-3308.
This section is referenced in § 28-3301, § 28-3303, and § 28-3802.
Section 3 of the Federal Deposit Insurance Act and section 401 of the National Housing Act, both referred to in subsection (e) of this section, are codified in 12 U.S.C. §§ 1813 and 1724, respectively. 12 U.S.C. 1724 was repealed by Pub. L. 101-73, title IV, § 407, August 9, 1989, 103 Stat. 363.
The Council of the District of Columbia is authorized from time to time to provide by regulation for (1) the exemption from the provisions of this chapter of any loan or financial transaction, and (2) the change of any interest rate specified in this chapter. The Council is further authorized to amend or repeal any such regulation at any time, but no such amendment or repeal relating to any exemption made under authority of this section shall affect any such loan or financial transaction lawfully made or entered into while such exemption is in effect.
(Dec. 29, 1973, 87 Stat. 945, Pub. L. 93-229, § 1(a); Apr. 9, 1997, D.C. Law 11-255, § 27(f), 44 DCR 1271.)
1981 Ed., § 28-3309.
1973 Ed., § 28-3309.
This section originated at a time when local government powers were delegated to the District of Columbia Council and to a Commissioner of the District of Columbia. The District of Columbia Self-Government and Governmental Reorganization Act, 87 Stat. 818, § 711 ( D.C. Code, § 1-207.11), abolished the District of Columbia Council and the Office of Commissioner of the District of Columbia. These branches of government were replaced by the Council of the District of Columbia and the Office of the Mayor of the District of Columbia, respectively. Accordingly, and also pursuant to § 714(a) of such Act ( D.C. Code, § 1-207.14(a)), appropriate changes in terminology were made in this section.
1981 Ed., § 28-3310.
This section is referenced in § 28-3301.
(a) For the purposes of this chapter, the word “interest” means any compensation directly or indirectly imposed by a lender for the extension of credit for the use or forbearance of money, including any loan fee, origination fee, service and carrying charge, investigator’s fee, and any amount payable as a discount under section 28-3301(e)(1), or point, or otherwise payable for services. The following charges shall not be considered interest:
(3) reasonable charges by the lender’s attorney or other agent for service rendered in connection with collateral appraisals and the preparation, closing, or disbursement of the loan, but only if the charges are an actual expense of the lender;
(5) premiums for insurance against loss of or damage to the property, or against liability arising out of the ownership or use of the property, but only if the lender does not in fact require that the insurance be purchased through a particular broker, agent or insurance company; that the insurance coverage may be obtained from a broker, agent or insurance company of borrower’s choice, subject to approval by the lender, and this fact is clearly and conspicuously disclosed; and that if the insurance coverage is obtained from or through the lender, the term of and premiums for the insurance coverage are clearly and conspicuously disclosed;
1981 Ed., § 28-3311.
This section is referenced in § 28-3301 and § 42-2403.
It shall be a violation of this chapter for any lender to:
(1) misrepresent as to a material fact;
(2) fail to state a material fact;
(3) disparage the services or business of another by false or misleading representations of material facts;
(4) advertise or offer services without the intent to provide them or without the intent to provide them as advertised or offered;
(5) include in the loan or financial transaction agreement an acceleration clause under which any part or all of the unpaid balance of the loan or financial transaction not yet matured may be declared due and payable for any reason other than due to default by the borrower in the payment or in accordance with another term of the agreement; or
(6) include in the loan or financial transaction agreement any provision by which the borrower waives any right accruing to him under the provisions of this chapter.
(Mar. 14, 1984, D.C. Law 5-62, § 4, 31 DCR 114; Apr. 9, 1997, D.C. Law 11-255, § 27(g), 44 DCR 1271.)
1981 Ed., § 28-3312.
Any lender who wilfully violates any provision of this chapter shall, upon conviction thereof, be fined not more than the amount set forth in [§ 22-3571.01] or imprisoned for not more than 1 year, or both.
(Mar. 14, 1984, D.C. Law 5-62, § 4, 31 DCR 114; June 11, 2013, D.C. Law 19-317, § 285(b), 60 DCR 2064.)
1981 Ed., § 28-3313.
The 2013 amendment by D.C. Law 19-317 substituted “not more than the amount set forth in [§ 22-3571.01]” for “not more than $1,000”.
For temporary (90 days) amendment of this section, see § 285(b) of the Criminal Fine Proportionality Emergency Act of 2013 (D.C. Act 20-45, April 1, 2013, 60 DCR 5400, 20 DCSTAT 1300).
Any borrower who suffers a violation of any provision of this chapter by any lender may bring an action in the Superior Court of the District of Columbia to recover, or obtain, or enforce any of the following:
(2) actual and punitive damages; or
(Mar. 14, 1984, D.C. Law 5-62, § 4, 31 DCR 114; Apr. 9, 1997, D.C. Law 11-255, § 27(h), 44 DCR 1271.)
1981 Ed., § 28-3314.
Any institution of higher education located in the District of Columbia and described in the first sentence of section 101(a) of the Higher Education Amendments, approved October 7, 1998 (112 Stat. 1385; 20 U.S.C. § 1001(a) ) (other than District of Columbia Teachers’ College, Federal City College, Gallaudet College, and Howard University) may borrow money at such rates of interest as the institution may determine, without regard to the restrictions of any usury law applicable in the District of Columbia, and shall not plead any statutes against usury in any action.
(July 2, 2011, D.C. Law 18-378, § 3(i)(3), 58 DCR 1720.)
2001 Ed., § 29-631.
1981 Ed., § 29-820.
1973 Ed., § 29-421.