Interest

"The legal rate of interest shall be 7 percent per annum simple interest where the rate percent is not established by written contract. The parties may establish by written contract any rate of interest, expressed in simple interest terms as of the date of the evidence of the indebtedness, and charges and any manner of repayment, prepayment, or acceleration, where the principal amount involved is more than $3,000.00 but less than $250,000.00 or where the lender or creditor has committed to lend, advance, or forbear with respect to any loan, advance, or forbearance to enforce the collection of more than $3,000.00 but less than $250,000.00. Where the principal amount involved is $3,000.00 or less, such rate shall not exceed 16 percent per annum simple interest on any loan, advance, or forbearance to enforce the collection of any sum of money unless the loan, advance, or forbearance to enforce the collection of any sum of money is made pursuant to another law. (Ga. Code Ann., § 7-4-2)

All judgments in this state shall bear annual interest upon the principal amount recovered at a rate equal to the prime rate as published by the Board of Governors of the Federal Reserve System, as published in statistical release H. 15 or any publication that may supersede it, on the day the judgment is entered plus 3 percent. If the judgment is rendered on a written contract or obligation providing for interest at a specified rate, the judgment shall bear interest at the rate specified in the contract or obligation. (Ga. Code Ann., § 7-4-12)"

It's important to ensure the interest rates charged within any lease or finance agreement are within the statutory limits, or that the agreement contains some form of savings clause that provides if the interest set forth is above the legal limit, the interest amount enforced on the agreement will be reduced to the maximum amount allowed by law.