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 ?
I personally suspect that the Anti usury law was scrapped through the lobby of banks and lending institutions because of disparities between government interests rates, cost of money and many such reasons years ago.
And when the early American colonists began settling up and down the Eastern Seaboard, they brought with them England's usury law. By the 1970s all but three states still had general usury laws on the book.
Peterson, Usury Law, Payday Loans, and Statutory Sleight of Hand: Salience Distortion in American Credit Pricing Limits, 92 Minn.
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.
if no other state law allows a rate higher than 36% for any of the four loan products in the Scorecard, the criminal usury law is termed a "soft cap," and the grade is a P.
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.
(51) See Swan, supra note 48, at 778 (describing one rationale of usury law as prevent ing "poor persons ...