- Understanding Usury Laws: How They Impact Loan Interest Rates
FAQs
Q: What are usury laws?
A: Laws that regulate the maximum interest rates that can be charged on loans.
Q: How do usury laws affect loan agreements?
A: They ensure interest rates are within legal limits.
Q: What are the penalties for violating usury laws?
A: Fines, penalties, and potential legal action.
Benefits
- Protection from high-interest rates.
- Fair lending practices.
- Legal recourse for violations.
Losses
- Potential penalties for lenders.
- Legal complexity in compliance.
- Borrower risk of illegal charges.