What happens who the amount of debt exceeds the state's usury interest limits?

Answer by  patti (29325)

State usury limits are about interest rates, not the amount of debt. While state laws limit the amount of interest that can be charged on loans, some banks (with "national" or NA in their names) are exempt from usury limits due to 1980 legislation.

Answer by  Cecilia (2828)

Usury refers to the interest rate charged, not the amount. Each state has different limits on the highest legal interest rate allowable. If the amount of debt exceeds your ability to repay, look for a legitimate credit counseling agency to see if you can get the interest rate reduced.