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Usury; Interest Rates; Usurious

This essay is published for informational purposes only.  It is not legal advice, nor is it intended as a substitute for the advice of your attorney.

Usury involves charging an unconscionable or exorbitant rates of interest on a loan or debt.  Usury does not depend on whether the lender actually gets more than the legal maximum rate of interest or not.  Instead, it depends on whether the lender's intention was to charge more than legal maximum interest rate.  Under U.S. law, a loan is permitted between two parties with or without the payment of interest.  In the United States, interest charged on certain types of debt is regulated by state law and cannot exceed the maximum rate provided by applicable state law.

Edited by Michael C. Dennis.