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Usury Rate

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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.


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Arizona's Proposition 200 reapplied the state's usury rate cap to payday lenders, who had previously enjoyed an exemption.
Bingaman did vote against the bill which would have capped at 15 percent (the usury rate for all of us individual citizens) the amount of interest that credit-card companies can charge customers.
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.
 
 
 
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