# D.C. Code § 28-3305: Unlawful interest credited on principal debt

> District of Columbia · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3305

## Section

- **Citation:** D.C. Code § 28-3305
- **Heading:** Unlawful interest credited on principal debt
- **Jurisdiction:** District of Columbia
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** DC Code / Title 28 / Chapter 33 / § 28-3305

## Text

In an action upon a contract for the payment of money with interest at a rate forbidden by law, any payment of interest that may have been made on account of the contract is deemed to be payment made on account of the principal debt; and judgment shall be rendered for no more than the balance found due after deducting and properly crediting the interest so paid. A bona fide indorsee of negotiable paper purchased before due is not affected by any usury exacted by a former holder of the paper unless he had notice of the usury before his purchase.

## Nearby sections

- [D.C. Code § 28-3301 § 28-3301. Rate of interest expressed in contract.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3301.md)
- [D.C. Code § 28-3302 § 28-3302. Rate of interest not expressed and on judgments.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3302.md)
- [D.C. Code § 28-3303 § 28-3303. Usury defined.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3303.md)
- [D.C. Code § 28-3304 § 28-3304. Action to recover usury paid.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3304.md)
- [D.C. Code § 28-3305 § 28-3305. Unlawful interest credited on principal debt.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3305.md)
- [D.C. Code § 28-3306 § 28-3306. Parties compelled to testify.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3306.md)
- [D.C. Code § 28-3307 § 28-3307. Council of the District of Columbia authorized to exempt certain mortgages and loans.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3307.md)
- [D.C. Code § 28-3308 § 28-3308. Finance charge on direct installment loans.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3308.md)
- [D.C. Code § 28-3309 § 28-3309. Council of the District of Columbia authorized to exempt certain loans, and to change rates of interest.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3309.md)
- [D.C. Code § 28-3310 § 28-3310. Consumer protections.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3310.md)
- [D.C. Code § 28-3311 § 28-3311. Definition of interest.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3311.md)
- [D.C. Code § 28-3312 § 28-3312. Unlawful practices.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3312.md)
- [D.C. Code § 28-3313 § 28-3313. Penalties.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3313.md)
- [D.C. Code § 28-3314 § 28-3314. Right of action.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3314.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_DC_T28_C33_S28-3305. Check the current official text before relying on it. Not legal advice.