What Is Usury
Many states have enacted usury laws to protect consumers from predatory lending practices. To illustrate, if a borrower needs to take out a personal loan, but their bank denies their application, they might have to settle for a lender charging whatever interest rate they want. This might be 40% or more if such a thing were allowed. But that would likely be considered usury, or above the interest rate legal limit, depending on the state law....