Definition
Usury laws are state statutes capping maximum interest rates on consumer loans. Most US states cap small-loan rates around 36%, with lower limits for larger loans. Fintechs historically partner with banks in no-cap states to export higher rates nationally.
Key Points
- Central to 2026 opposition against enova/grasshopper-bank and OppFi bank acquisitions
- National bank charter via acquisition could change regulatory posture but not eliminate political scrutiny
- Tension between credit access for underserved borrowers and predatory lending allegations