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Usury |
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In the "good old days", the term usury was used to describe the act of lending money at any interest rate no matter how high or low. In modern times, usury refers to lending money at unusually high or illegal interest rates.
The definition of what level of interest rates can be considered usury is a moving target as variable rate loans push interest charges to record highs. Just a few years ago 19% would be considered usury. Today, with states like Delaware and South Dakota passing laws that effectively let lenders charge as much interest as the borrower is willing to pay, it's hard to pin usury down to a firm amount.
One thing you can be sure of, if you borrow money for a licensed and registered lending company, U.S. Bank, or carry an open balance on your credit cards, the chances are good that the rate you pay will be legal even if you personally feel that it's usury. That's because the legal penalties are high for lenders who violate usury laws.
On the other hand, if you borrow money from th guy that hangs out behind the neighborhood gas station, usury is the least of your worries.
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Credit Card Definitions > N - Z > Usury
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