Usury Laws


DEFINITION of 'Usury Laws'

Regulations governing the amount of interest that can be charged on a loan. Usury laws specifically target the practice of charging excessively high rates on loans by setting caps on the maximum amount of interest that can be levied. These laws are designed to protect consumers.


In the United States, individual states are responsible for setting their own usury laws. Though this type of financial activity could fall under the Constitution's commerce clause, Congress hasn't traditionally focused on usury. The government does consider the collection of usury through violent means a federal offense.

  1. Interest

    The charge for the privilege of borrowing money, typically expressed ...
  2. Usury Rate

    A rate of interest that is usually considerably above current ...
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a ...
  4. Loan

    The act of giving money, property or other material goods to ...
  5. Usury

    The act of lending money at an interest rate that is considered ...
  6. Loan Shark

    A person or entity that charges borrowers interest above an established ...
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