Usury Laws

Usury laws are state and federal laws that regulate the maximum interest rate that can be charged on loans. The purpose of these laws is to protect consumers from being taken advantage of by lenders who charge excessive interest rates.

Usury laws vary from state to state, but they typically cap the interest rate that can be charged on loans at a certain percentage. For example, in California, the maximum interest rate that can be charged on a loan is 10%. If a lender charges an interest rate that is higher than the legal limit, the borrower may be able to sue the lender for violating the usury laws.

In addition to state laws, there are also federal usury laws that apply to certain types of loans. For example, the Truth in Lending Act (TILA) sets a maximum interest rate of 36% for loans that are made to consumers.

Usury laws are an important consumer protection measure. They help to ensure that consumers are not taken advantage of by lenders who charge excessive interest rates. However, it is important to note that usury laws do not apply to all types of loans. For example, usury laws do not apply to loans that are made to businesses.

Here are some additional details about usury laws:

* Usury laws are designed to protect consumers from being taken advantage of by lenders who charge excessive interest rates.
* The maximum interest rate that can be charged on a loan varies from state to state.
* In addition to state laws, there are also federal usury laws that apply to certain types of loans.
* Usury laws do not apply to all types of loans. For example, usury laws do not apply to loans that are made to businesses.