Most states have usury laws (usually statutes) governing the amount of interest that can be charged on a loan. Usury laws vary from state to state, but the elements of a usury claim are generally: (1) a loan of money; (2) an absolute obligation to repay the principal; and (3) the exaction of a greater compensation than allowed by law for the use of the money by the borrower.

And interest means compensation for the use, forbearance, or detention of money. The term does not include time price differential, regardless of how it is denominated. The term does not include compensation or other amounts that are determined or stated by law not to constitute interest, or that are permitted to be contracted for, charged, or received in addition to interest in connection with an extension of credit.

Service charges, finance charges, and discount points are generally considered interest for purposes of usury. But contingent or uncertain charges are generally not considered interest.

In Arizona, usury laws are governed by Arizona Revised Statutes (A.R.S.) §44-1201 and related statutes. These laws set the maximum interest rates that can be charged on a loan. As of the knowledge cutoff date, the legal rate of interest for a loan where no rate is agreed upon is 10% per annum. If a rate is agreed upon, it must not exceed the maximum rate permitted by law. The elements of a usury claim in Arizona include: (1) the existence of a loan of money; (2) an absolute obligation on the part of the borrower to repay the principal amount; and (3) the lender charging an interest rate that exceeds what is permitted by Arizona law. In Arizona, interest is considered compensation for the use, forbearance, or detention of money. Charges that are not classified as interest include time price differentials and other amounts that are not considered interest under the law or that are allowed in addition to interest in connection with an extension of credit. Service charges, finance charges, and discount points are typically treated as interest for the purposes of usury unless they fall into the category of permissible additional charges. Contingent or uncertain charges are generally not regarded as interest under Arizona's usury laws.