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Can lenders get in trouble for usury?
Is it against the law? How do you know if a company is practicing usury?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“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.”View full answer
- Gregory R.
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