Usury laws

Usury laws

Laws limiting the amount of interest that can be charged on loans.

Usury Law

Any law restricting banks, credit cards, and financial services companies from charging an excessive amount in interest. In 1978, the U.S. Supreme Court held that a company may charge the legal interest 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 quite loose restrictions.
References in periodicals archive ?
Usury laws do not apply to the initial overdraft fee because it is considered a service charge and not a loan.
In the US all 13 states in the original 1776 Union adopted usury laws specifying maximum annual interest rates of between five and eight per cent, and, while most states significantly relaxed these maxima in the early 1900s to enable mainstream banks to compete with 'salary lenders' or 'loan sharks', state-regulated usury limits remained the basis of consumer protection law until the arrival of the modern-day payday loan industry in the 1980s.
This short history of usury laws puts into perspective just how bizarre the credit markets of the United States have become over the last forty years.
Digital Dye Designs and Cool Comfort sued both CCT and American Marketing and Capital, charging them with violation of New Hampshire finance charge disclosure laws, the Consumer Protection Act of both Massachusetts and New Hampshire, the usury laws of Massachusetts and Rhode Island, and unlawful collection of debt in Rhode Island and Maine's UCC Negotiable and unfair trade practices statutes.
Mali Nachum, a former partner in the financially troubled Beso club, filed the suit on Monday in Los Angeles County Superior Court, claiming Longoria violated California usury laws, reports the Telegraph.
South Dakota has no usury laws and many large banks have moved parts of some operations to the state.
Property owners that participate in seller financing should also consider other risks and costs associated with the lending business, including lender liability, usury laws, restrictions on collection practices, and licensing and other regulatory requirements.
Hopefully, you do not overlook the usury laws when advising Mr.
His recommendations include the reinstatement of usury laws to limit credit card and adjustable interest rate mortgages.
Cities, counties and state of Arkansas governmental entities like the ADFA are controlled by the usury laws of the Arkansas.
Payday and auto-title loan businesses often try to skirt these laws by disguising the loans--for example, claiming they are "lease-purchase" contracts or pawn transactions, which are often exempt from usury laws.