Definition - What does Usurious mean?

A usurious loan or contract is one in which the interest rate accompanying the loan or contract is above that which is permitted by law. Usury laws are significantly old. These usury laws are there in order to try and help protect people from being treated unjustly when purchasing.

Justipedia explains Usurious

In the United States, each state defines what it feels is usurious rather than this being decided by the federal government. It is standard in almost every state that a usurious contract does not need to be fulfilled and a usurious loan need not be paid back at all. Most states reason that this is enough detriment to prevent anybody from having someone enter into a legally unreasonable contract. Therefore, if person A gives person B a loan with an interest rate that is usurious, person A cannot sue person B for even $1.00.

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