Unconscionability (interest rates)

Unconscionability — the doctrine that polices PH loan pricing now that the Usury Law’s ceilings are suspended (since 1983): courts void or reduce rates they find shocking to conscience, with a case line treating ~3%/month and above as suspect and egregious rates struck down outright — typically substituting the 6%/yr legal interest rate after years of litigation. The practitioner’s response: one clean, justified rate at or under 2–3%/month, no disguised stacking of penalties and fees, and no silent compounding — interest-on-interest requires express written stipulation.

First used in: 4.5 · Private lending: being the bank