Haw. Rev. Stat. § 478-5

Current through the 2024 Legislative Session

Section 478-5 - Usury not recoverable

If a greater rate of interest than that permitted by law is contracted for with respect to any consumer credit transaction, any home business loan or any credit card agreement, the contract shall not, by reason thereof, be void. But if in any action on the contract proof is made that a greater rate of interest than that permitted by law has been directly or indirectly contracted for, the creditor shall only recover the principal and the debtor shall recover costs. If interest has been paid, judgment shall be for the principal less the amount of interest paid. This section shall not be held to apply to:

(1) Loans made by financial services loan companies and credit unions at the rates authorized under and pursuant to articles 9 and 10 of chapter 412; or

(2) Any installment loan regulated under chapter 480J.

HRS § 478-5

Amended by L 2021, c 56,§ 4, eff. 7/1/2021.

CC 1859, §1483; am L 1898, c 4, §4; RL 1925, §3588; am L 1931, c 137, §1; RL 1935, §7053; am L 1939, c 75, pt of §1(6782 W); RL 1945, §8734; RL 1955, § 191-4; am L 1957, c 95, §1; HRS § 478-4; am L 1984, c 253, §10; ren and am L 1986, c 137, pt of §1; am L 1989, c 266, §3; am L 1993, c 350, §26

Rules of Court

Costs, see HRCP rule 54(d).

Recovery of principal may be had where principal and usurious interest are separable even though they are lumped together in note sued on; payments made on account of such note should be applied on principal.11 Haw. 747. Statute applied and payments made under usurious contract applied on principal. 34 H. 639, modified 34 H. 685. Usury voluntarily paid not recoverable.36 Haw. 107; 37 H. 295. This section docks interest in action brought by lender, but does not render contract entirely void as to interest.49 Haw. 160, 183-86,413 P.2d 221, reh'g den. 49 H. 255,413 P.2d 221.