Lending regulation
Usury
Charging interest above the maximum a state’s law permits
Usury ceilings are set by state law and vary considerably, with exemptions for particular lender types and loan categories. Where a rate exceeds the ceiling, penalties can reach the interest and sometimes the principal.
How the exam asks about it
A state-law subject that appears nationally as a vocabulary item: recognize it as an unlawfully high interest rate.
Related terms
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