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Connecticut Interest Rates Laws

Whether it’s a credit card or a loan for a home, car, or schooling, most of us have had to deal with interest rates in some form or another. And often, that means reading through pages of fine print just to determine what the rate is. These encounters can leave us wondering what the rules are for banks and other institutions that charge interest, or if there are even rules in the first place.

Fortunately, the Constitution State has put some consumer protections in place to limit interest rates on credit cards, loans, and even legal judgments. Here is a basic overview of interest rates laws in Connecticut.

Interest Rates Laws

State interest rate laws attempt to help consumers by placing a ceiling on the amount of interest a creditor can charge. For example, the legal maximum in Connecticut is 12% in most cases, but can be 8% on court judgments. There can also be exceptions for certain mortgages, pawn brokers, and student loans, as well as loans for boats and automobiles.

Interest Rates Laws in Connecticut

Connecticut's interest rate statutes are detailed in the chart below.

Code Section

General Statutes of Connecticut Title 37-1, et seq.: Interest

Legal Maximum Rate of Interest

12% (§37-4)

Penalty for Usury (Unlawful Interest Rate)

Loan is not enforceable (§36a-573)

Interest Rates on Judgments

Absent agreement to contrary, 8% (§37-1)


Loans before September 12, 1911; bank; savings and loan; credit union; certain mortgages; loan for motor vehicle; boat; loan for higher education (§37-9); pawnbroker and loan broker (§21-44)

While it's obviously more easily said than done, the best way to avoid getting into financial trouble with a high interest rate is to avoid credit card debt altogether. The best strategies for avoiding credit debt include using your credit cards responsibly and paying off the entire balance of the card as soon as you can to avoid accruing interest on your purchases. If you do happen to find yourself in significant credit debt, there may consumer protections under federal law that can help.

Connecticut Interest Rate Laws: Related Resources

Just making heads or tails of the terms of service for credit cards or loans can seem impossible. You can contact a Connecticut consumer protection attorney if you would like legal assistance regarding an interest rate issue. You can also visit FindLaw’s section on Usury Laws and Limits on Credit Card Interest Rates for more resources and information.

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