usury law

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.

usury law

A state law that restricts the interest rate that can be charged on specified types of loans.
References in periodicals archive ?
Arkansas' usury law finally drove the storefront loan sharks out of the state, but they are Southern's biggest competitors in Mississippi.
Opinions are gathered from the borrower's attorney and include confirmation of the enforceability of loan documents, the effectiveness of the deed of trust, due authorization of the transaction, the entity's good standing as a limited liability corporation or corporation, a lack of usury law violations, and the effectiveness of the security agreement.
Martin Luther argued that any interest rate above 8 percent was generally immoral, and the Puritans who settled the Massachusetts Bay Colony agreed, adopting America's first usury law 150 years before the ratification of the Constitution.
Another distinct characteristic of this selection is the exception the bishop makes regarding the investment of money for interest on behalf of orphans, which also was allowed by the usury law of 1571.
At base, the Court adopted a presumption of liberty modified by numerous exceptions to the rule, such as Sunday closing laws, usury law, and lottery prohibitions.
The decision follows a meeting the Greater Boston Interfaith Organization held with Bank of America, asking the lender to comply with the state's usury law, which caps rates at 18 percent, Cahill said in an interview yesterday.
Supreme Court reversed the Florida Supreme Court's decision that a payday loan contract allowing lending at triple-digit interest rates was illegal under Florida's 45 percent APR criminal usury law.
Oregon had such a usury law until 1981, when legislators joined other states across the country in scrapping interest limits.
94) The adoption of an interest rate ceiling became the foundation of English usury law.
However, the statute does not specify any particular rate ceiling, leaving that choice to the discretion of the creditor, or, in some instances, to determination by the applicable state usury law.
Senate Bill 568 and House Bill 1572--being pushed, unfortunately, by former House Speaker and Congressman-wannabe Robbie Wills--assume that Arkansans didn't mean small loans when they repaired the usury law by vote just four months ago.
Italy's usury law obstructs, conservatively speaking, at least $100 billion in new mortgage financing, blocking access to mortgages for millions of Italians who have low incomes or a less-than-perfect credit history.