What is usury?

Usury is a type of banking law in Georgia that limits the amount of interest a lender can charge on a loan. Usury laws are designed to protect borrowers from excessive interest rates. These laws seek to provide borrowers with some degree of protection against lenders charging more than what is considered a reasonable amount of interest. Under usury laws in Georgia, the maximum amount of interest a creditor can charge on a loan is 16%. This interest rate is set by the state and applies to most types of lending, such as consumer loans, business loans, and mortgages. If a creditor charges more than this, they may be in violation of the law. In addition, usury laws also limit the amount of late fees a borrower can be charged for overdue payments. If a lender charges more than the allowed amount, the borrower can take legal action to have the fee refunded. If the creditor is found to be in violation of usury laws, they may face civil penalties and be required to repay any excess fees. Usury laws are important because they protect consumers from high-interest loans. They ensure that lenders do not take advantage of borrowers by charging them excessive amounts of interest. By understanding and following Georgia’s usury laws, individuals can ensure that they do not end up paying more than they bargained for when taking out a loan.

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