What is usury?

Usury is a form of banking law in Nebraska that regulates the amount of interest lenders can charge to borrowers. Usury laws exist to protect consumers from taking on expensive loans. In Nebraska, usury law is enforced by the Nebraska Department of Banking and Finance, which sets the maximum rate of interest creditors can charge to borrowers. For most consumer loans, the legal rate of interest that can be charged is established by legislation. Generally, the rate is currently set at 24% annually on loans under $25,000; the rate is slightly higher for higher loan amounts. In some cases, lenders may contract with borrowers to charge higher interest rates, but such contracts are subject to approval by the Department of Banking and Finance. Failing to adhere to the state’s usury laws can result in sanctions from the state, including monetary fines and other penalties. Usury laws are in place to ensure consumers are not taken advantage of by lenders and are charged reasonable interest rates on loans.

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What is usury?

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