Warning
Info
Warning
Info
Simple English definitions for legal terms
usury law
Read a random definition: Court of Session
A quick definition of usury law:
Usury law: A rule that says lenders can't charge too much interest on loans. This is to protect people from being taken advantage of and having to pay back more money than they can afford.
A more thorough explanation:
Definition: A usury law is a legal regulation that prevents lenders from charging excessively high interest rates on loans.
For example, let's say a lender offers a loan with an interest rate of 50%. This would be considered usury and would be illegal under usury laws. In contrast, if the lender offers a loan with an interest rate of 10%, this would be considered legal under usury laws.
Usury laws are in place to protect borrowers from being taken advantage of by lenders who charge exorbitant interest rates. These laws vary by state and country, but they generally set a maximum interest rate that lenders can charge.