What is usury?

Usury is a legal term used to refer to the practice of charging an excessive or illegal amount of interest on a loan or other debt instrument. In South Carolina, the law limits the amount of interest a lender can charge. The maximum rate of interest that can be charged on a loan or other debt instrument in South Carolina is 8%. Any interest rate over 8% is considered usurious and is against the law. Usury laws are in place to protect consumers from predatory lending practices and to ensure that lenders are not taking advantage of borrowers with high interest rates. Usury laws also help borrowers shop around for the best loan rate since lenders must compete on the rate of interest they offer. By limiting the amount of interest a lender can charge, usury laws also make it easier for borrowers to pay back loans without becoming overwhelmed by debt. Usury laws in South Carolina are enforced by the South Carolina Office of Consumer Affairs. If a lender is found to be charging an illegal interest rate, they can be held liable for any excessive interest charged. Additionally, borrowers are always encouraged to research loan rates and understand the terms of any loan or debt instrument before signing.

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What is usury?

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