Massachusetts Maximum Interest Rate: Usury Laws and Legal Limits — Best Proven Guide (2026)

Massachusetts maximum interest rate is the answer to “maximum interest rate allowed by law in Massachusetts”. This guide gives the Massachusetts figures in a dated table, explains in plain words what they mean, walks through the steps, and points to the official forms and free help.

The Massachusetts maximum interest rate figures on this page were verified against a dated 50-state compilation and Massachusetts sources as of October 2026; the statute named here is where to check them yourself.

What the Massachusetts Maximum Interest Rate Means

Usury means charging more interest than the law allows. In Massachusetts the “legal rate” is only a fallback, used when a written agreement doesn’t set a rate. The criminal cap is a ceiling on what a lender may charge even when the borrower agrees in writing. Under the criminal statute, interest and fees such as brokerage, commissions, service charges and extension charges are added together when measuring the rate.

The Massachusetts maximum interest rate Figures

The Massachusetts maximum interest rate figures on this page were verified against a dated 50-state compilation and Massachusetts sources as of October 2026; the statute named here is where to check them yourself.

Who the Massachusetts Maximum Interest Rate Applies To

The general cap covers most private and business loans made in Massachusetts. Loans of $6,000 or less at more than 12% need a Division of Banks small-loan license under M.G.L. c.140, s.96. Licensed small lenders are held to 23% a year plus a one-time $20 administrative fee (209 CMR 26.00). Banks chartered in other states and national banks generally follow their home-state rate under federal law.

Credit cards from Massachusetts-based issuers are capped separately (c.140, s.114B).

Credit Cards and the Massachusetts Maximum Interest Rate

Federal banking law lets a national bank charge the interest rate allowed in the state where it is based, even to customers in Massachusetts. Many large card issuers are based in states with high or no rate limits, so card rates above the Massachusetts cap are usually legal. Massachusetts’ own 18% limit on open-end credit (c.140, s.114B) generally reaches only issuers that state law governs.

What Happens When a Lender Breaks the Massachusetts Maximum Interest Rate

The person who knowingly charges usurious interest can face up to 10 years in state prison, a fine of up to $10,000, or both. The same statute lets a borrower ask a court to declare the loan void, and courts may instead reform it. An unlicensed small lender, or one charging above the small-loan cap, may face Division of Banks or Attorney General enforcement.

Confirm the details with the statute, the court clerk or an attorney.

How to Check a Loan Against the Massachusetts Maximum Interest Rate

1) Find the APR and the finance charge on your Truth in Lending disclosure or loan contract. 2) Add up every fee you paid to get the loan: origination, brokerage, service and extension fees. 3) If no APR is given, divide the yearly cost of interest and fees by the amount you actually received.

4) Compare that yearly figure with the state limits, and with the 23% small-loan limit if the loan was $6,000 or less. 5) Ask the Division of Banks whether the lender is licensed.

Where to Report a Loan Above the Massachusetts Maximum Interest Rate

The Massachusetts Division of Banks licenses consumer lenders and takes complaints, and the Attorney General’s Consumer Advocacy & Response Division also takes complaints. You can also file a complaint with the federal Consumer Financial Protection Bureau at consumerfinance.gov/complaint.

Common Mistakes With Massachusetts maximum interest rate

The most common mistake is missing a deadline: court and creditor deadlines run whether or not you have read the papers, and a missed one usually cannot be undone. The second is relying on an old article or a friend’s experience in another state — the rules on this page differ from state to state and change often, which is why every figure here is dated.

The third is not keeping copies: every letter, form, receipt and bank statement may matter later, so keep them together and note the date you received each one.

Free Help With Massachusetts maximum interest rate in Massachusetts

You do not have to handle this alone or pay to get answers. The Massachusetts court self-help center explains the forms and the steps, and court clerks can tell you where and how to file, although they cannot give legal advice.

Legal aid organizations represent many people at no cost when income is limited, and the Massachusetts bar’s lawyer referral service can connect you with a lawyer for a low-cost first consultation. The Consumer Financial Protection Bureau accepts complaints about lenders, banks and debt collectors nationwide.

How We Verify the Massachusetts maximum interest rate Figures

Every figure in the table above comes from our 50-state data file, built by reading the Massachusetts statute or an official compilation of it, and each one carries the month we last checked it. Our writers do not change those figures; they explain them. When the law changes, the figure is updated and the date moves.

If something on this page no longer matches the statute, the statute controls — and we want to hear about it.

Payday loans are effectively unavailable in Massachusetts, because small loans are held to the 23% license cap and online lenders must also be licensed. Fees that leave a borrower with $6,000 or less bring the loan under the small-loan rules (2020 AG settlement). A lender’s notice to the Attorney General lasts two years and must be renewed.

Card late fees under c.140, s.114B are limited to the lesser of 10% of the balance or $10.

Next rung: the Massachusetts payday loan page covers the short-term loans that have their own caps.

Massachusetts Maximum Interest Rate FAQ

What is the maximum interest rate allowed by law in Massachusetts?

Without an agreement: 6% per year when no rate is agreed.

Is there a criminal usury law in Massachusetts?

above 20% per year is criminal usury

Official Massachusetts Sources & Resources

• Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://www.csbs.org/50-state-survey-consumer-finance-laws
• Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://facts.csbs.org/consumer-finance-law/dev
• Massachusetts statute / opinion: https://malegislature.gov/Laws/GeneralLaws/PartIV/TitleI/Chapter271/Section49
• Massachusetts Division of Banks, Consumer Alert on Payday Loans (small-loan 23% APR / $20 fee limit): https://www.mass.gov/doc/consumer-alert-on-payday-loans-from-tribal-lenders/download
• Consumer Financial Protection Bureau: consumerfinance.gov

This Massachusetts maximum interest rate guide was last verified against official Massachusetts sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.

More Massachusetts Money Rights Guides

• Massachusetts Payday Loan Laws
• Massachusetts Judgment Expiration
• Money Rights Guides for All 50 States

Disclaimer: This guide is general information, not legal or financial advice. Bonus Bank Daily is an independent educational resource — not a law firm, not a bank, not a debt collector and not a government agency. Judgment, levy, interest-rate and debt rules change — every figure here carries the date we verified it.

Confirm the current rule with the statute, the court clerk or a licensed attorney in your state before you act.