Can lenders get in trouble for usury?

Is it against the law? How do you know if a company is practicing usury?

Answer
“In most states, usury is against the law and regulations prevent it from occurring. Businesses that break usury laws may have to pay fines or give the entire amount of interest back to the borrower.
However, some lenders are exempt from usury laws. Since every state regulates usury differently, it depends on where your lender is headquartered. For example, if you live in New Jersey but your lender is in Delaware, Delaware’s usury laws govern the rate of your car loan.
To decide whether a company is offering fair lending rates, you should look into the state’s usury interest rate and what exemptions exist.
Just as you would shop around for car insurance, doing the same for your car loan will give you an idea of what interest rate is fair and reasonable.
Once you’ve found a great loan rate, don’t forget about your car insurance. The Jerry app provides quotes from dozens of providers so you can get the full coverage you need to protect your investment.”
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Emily Maracle
Answered on Jul 30, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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