Usury Rate

Usury Rate

The highest, legal interest rate on a financial instrument in a jurisdiction. In 1978, the U.S. Supreme Court held that a company may charge up to the usury rate in the state in which it is registered, regardless of where the borrower lives. As a result, many American credit card companies are registered in South Dakota, which has loose restrictions.
References in periodicals archive ?
One effort tried to cap the state's states usury rate at 500 percent, but no one [in the legislature] would touch it.
He adds that usury rates in Utah are market driven and based upon "whatever people are willing to pay.
Arizona's Proposition 200 reapplied the state's usury rate cap to payday lenders, who had previously enjoyed an exemption.
In her testimony, Fox urged subcommittee members to back an alternative measure, the Protecting Consumers from Unreasonable Credit Rates Act of 2009, which would establish a national usury rate cap of 36 percent.
Lyndsey Medsker, spokeswoman for the Community Financial Services Association of America, said the usury rate cap bill "is basically a ban on the industry.
As a result of the Federal Reserve's actions, the new maximum rate usury rate in Arkansas is 5.
Italy's usury rate is updated every three months in a formula that essentially imposes a rate no higher than 1.
Every quarter, as the market pushes the price up closer to equilibrium, the usury rate would be revised upward.
The trust documents define the maximum rate for taxable bonds as the lesser of the auction rate for that period, the maximum auction rate, 15%, and the usury rate.
If the bill had reached the floor, a heated floor fight would likely have resulted over whether to pass the measure, which effectively would eliminate so-called payday and title loan lenders--businesses that suddenly flooded the state after 1999, when New Hampshire became the only one in northern New England to lift usury rates.
South Dakota's Bill Janklow has reduced hazardous waste reporting requirements for corporations and allowed credit card companies that locate in his state to set high usury rates while paying no state corporate tax.
There are no credit bureaux and usury rates are set by the government.