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 ?
Congress should pass a usury law putting an interest rate limit on loans of P35,000.
Midland Funding, LLC, (1) that many in the banking industry believe has challenged a longstanding and fundamental principle of American bank usury law, namely, the principle of "valid-when-made.
New York's usury law provides that if a loan is less than $250,000, the interest rate cannot exceed 16%.
Arkansas' usury law finally drove the storefront loan sharks out of the state, but they are Southern's biggest competitors in Mississippi.
Courts will not, in any event, hesitate to declare usurious an agreement providing for late charges if the agreement is a mere contrivance to avoid the usury law and is in reality a loan or forbearance of money for more than the lawful interest rate.
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.
11) The imposition of usury law on the payday loan industry presents two concerns.
Oregon had such a usury law until 1981, when legislators joined other states across the country in scrapping interest limits.
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.