6-30 Finance companies have traditionally been subject to state-imposed usury ceilings on the maximum loan rate charged to any individual customers.

Question

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Finance companies have historically been subject to state-specific legal ceilings on the maximum rate of interest that may be levied on any given loan received by an individual. These restrictions are intended to defend consumer interests, primarily against predatory lending practices. However, some states have recently reformed their laws to exclude finance companies or to increase the maximum interest rates that these companies are permitted to charge.

6-30 Finance Companies Have Traditionally Been Subject to State-Imposed Usury