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Ponca Finance Co. v. Esser
Citations: 132 S.W.3d 930; 2004 Mo. App. LEXIS 681; 2004 WL 1047963Docket: No. WD 63150
Court: Missouri Court of Appeals; May 11, 2004; Missouri; State Appellate Court
Ponca Finance Company secured a default judgment against Tim Esser for a $500 loan with a specified annual interest rate of 125.96%. The circuit court, however, ruled that the judgment should accrue interest only at the statutory rate of nine percent, citing concerns over the repayment amount being significantly higher than the principal. On appeal, it was determined that the circuit court misapplied the law, as section 408.100 allows parties to contract for any agreed interest rate without limitation. The appellate court emphasized that since there was a clear written agreement for the higher interest rate, the circuit court had no authority to alter it. The ruling of the circuit court was reversed, and the case was remanded for recalculation of the judgment to reflect the agreed-upon interest rate of 125.96%. Supporting evidence included a letter from the Department of Economic Development affirming Ponca’s licensing and the permissibility of the agreed interest rate.