What are the federal regulations for interest rates?

Interest rates are regulated by the federal government, specifically the Federal Reserve. In Nevada, the maximum legal interest rate is 12% per year unless the loan contract provides for a higher rate. To qualify for this higher rate, the loan must meet certain criteria and be authorized by the Nevada Consumer Affairs Division. When it comes to consumer loans, federal law limits how much interest can be charged. The Truth in Lending Act requires that lenders disclose the cost of credit in terms of both the annual percentage rate (APR) and the finance charge. The APR is the cost of credit for a loan expressed as a yearly rate. The finance charge is the total dollar amount charged for credit and includes fees such as loan processing and documentation. In Nevada, there are also legal limits on the amount of interest a lender can charge. The state has an interest rate cap of 12% per year, but lenders may charge more if the loan contract allows for it. Under the federal Equal Credit Opportunity Act, it is illegal to discriminate when it comes to setting interest rates. Lenders must offer the same rates to all borrowers on the same loan terms. Additionally, lenders must disclose any changes in interest rate and the reasons for those changes. In summary, federal regulations on interest rates set the maximum legal interest rate in Nevada to 12% per year unless the loan contract allows for a higher rate. Additionally, lenders are required to disclose the cost of credit and cannot discriminate when setting interest rates.

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What are the federal regulations for interest rates?

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