In some states, a lender who charges a usurious rate forfeits both the principal and interest on the loan.

Name: In some states, a lender who charges a usurious rate forfeits both the principal and interest on the loan.
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

In certain jurisdictions, laws against usury can be strict, and lenders who charge excessively high interest rates may be penalized by losing both the principal and interest as a deterrent against predatory lending practices.

In Some States, a Lender Who Charges a Usurious Rate