What is the definition of usury law?

I know that it is an older term. How does it apply to a car loan I want to get?

“Usury is defined as: the illegal action or practice of lending money at unreasonably high rates of interest.
Usury is not federal law. Instead, every state regulates usury law to eliminate or curb predatory lending practices. States also decide who the regulations apply to. In many cases, usury law only applies to certain businesses; others are exempt.
Although not always exempt, may lenders for car loans are known for predatory lending practices. This is because most states allow high interest rates if the consumer willingly signs the contract. Always read a loan agreement thoroughly to avoid falling victim to these types of contracts.
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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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