Usury definition

Most states have passed laws that establish limits on the interest rates and fees that can be charged for loans. Usury is the act of charging of interest rates and fees that violate those laws. Usury is typically associated with what is termed "loan sharking" or "predatory lending."

Usury laws vary from state to state so it is important to become familiar with the governing law before entering into a lending agreement as either a lender or borrower.