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Usury is interest that a lender charges a borrower at a rate above the lawful ceiling on such charges; a contract upon the loan of money with an illegally high interest rate as a condition of the loan.
By restricting the amount of interest a creditor can charge, these laws are designed to help consumers avoid crippling debt and deter predatory lenders. Utah's maximum interest rate is 10% absent a contract, and charging more than the legal rate, (known as ?usury?) is a felony.
Utah interest rate laws are stated in Utah Code, Title 15 (Contracts and Obligations in General), Chapter 1 (Interest). Under Section 15-1-1, the state legal maximum interest rate is ten percent per annum in the absence of a contract specifying a different rate of interest.
Usury laws apply to private loans that are made for credit cards, loans, and other reasons. Summary: The law limits the amount of interest that can be charged on a loan. Usury laws apply to private loans and all types of loans except commercial loans.
When you consider who is exempt from usury laws, the most common loan providers are institutions. Institutions that provide consumer loans are typically exempt from usury laws. Institutions include banks, savings and loans, credit unions, licensed pawnbrokers, licensed finance lenders, and personal property brokers.