EDUARDO DE LA TORRE et al., Plaintiffs and Appellants, v. CASHCALL, INC., Defendant and Respondent., 5 Cal. 5th 966

Summary

HOLDINGS: [1]-In answering a certified question from the Ninth Circuit, the Supreme Court concluded that an interest rate on consumer loans of $2,500 or more may be deemed unconscionable under Fin. Code, § 22302; [2]-An interest rate on a loan is the price of that loan, and it is clear that the price term, like any other term in a contract, may be unconscionable; [3]-The California Legislature is entitled to subject loan transactions, like other contracts, to the unconscionability doctrine's nuanced blend of tractability and protection of human dignity, and did so here; [4]-Plaintiffs stated a cause of action in this litigation by bringing an unfair competition claim against a lender of consumer loans to high-risk borrowers that alleged a violation of § 22302 due to an unconscionably high interest rate.