Usurious refers to the act of excessively charging money when lending it to someone. It can be compared to a situation where a friend requests to borrow $10, but you insist on them repaying $20. This practice is unjust and is prohibited by law as it involves charging an exorbitant amount of interest on a loan.
The term “usurious” is an adjective used to describe the act of charging an unlawfully high interest rate on a loan. For instance, the loan shark’s usurious interest rates resulted in numerous borrowers being burdened with debt for an extended period. This example serves to demonstrate the meaning of usurious, as the loan shark exceeded the legally permissible interest rate, leading to the borrowers’ prolonged struggle with debt.
Usurious refers to the practice of charging excessive or unlawfully high interest rates on loans.
Yes, usury is illegal in many jurisdictions as it exploits borrowers and can lead to financial hardship.
The maximum interest rate allowed by law varies depending on the jurisdiction. It is important to consult local laws to determine the specific limits.
A loan can be considered usurious if the interest rate charged significantly exceeds the legal limit set by the jurisdiction.
Engaging in usurious lending can result in severe penalties, including fines, imprisonment, and potential civil liability for damages.
In some cases, if a lender can prove that they were unaware of the usurious nature of the interest rate, they may have a defence. However, it is generally expected that lenders exercise due diligence to ensure compliance with usury laws.
No, usurious loans are typically unenforceable in court. Courts will not uphold agreements that violate usury laws.
Yes, if you believe you have been a victim of usurious lending, you can report the lender to the appropriate regulatory authorities or seek legal assistance to address the issue.
No, borrowers cannot be held responsible for accepting a usurious loan. The responsibility lies with the lender who offered the loan.
To protect yourself from usurious lending practices, it is crucial to research and understand the legal interest rate limits in your jurisdiction. Additionally, carefully review loan agreements and seek legal advice if you suspect any usurious terms.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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