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HRS §412:9-303

What happens if a loan charges too much interest

If a financial services loan company charges more interest than the law allows, the loan is still valid. But the company can only collect the actual amount the borrower received plus proper charges. The borrower can recover costs, and any interest already paid is subtracted from what the company can get.

borrowersfinancial institutions

The statute, as written — Effect of excessive interest

If a greater rate of interest than that permitted under this article is contracted for in any loan under this article, the loan shall not, by reason thereof, be void. But, if in any action on the loan, proof is made that a greater rate of interest than that permitted by law has been directly or indirectly contracted for, the financial services loan company shall only recover the amount actually received by the borrower in cash, credit or the equivalent thereof plus the charges, if any, which were properly charged to the borrower and which have not been deducted from the principal amount of the contract or otherwise paid by the borrower. The borrower shall only recover costs. If interest has been paid, judgment shall be for the recoverable amount less the amount of interest paid. Sections 478-5 and 478-6 shall not apply to loans made under this article by financial services loan companies.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§478-5 What happens if a lender charges too much interest

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.