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 Connecticut, usury laws are codified under Title 37 of the Connecticut General Statutes, which governs interest rates. The legal maximum interest rate for a loan without a written contract is 8% per year. If there is a written agreement, the interest rate may be as high as 12% per year, unless otherwise specifically authorized by law to exceed this rate. Certain loans, such as those related to consumer credit, mortgages, and commercial transactions, may be subject to different regulations and limits. It's important to note that Connecticut law also permits parties to agree to higher rates of interest in certain commercial transactions. The elements of a usury claim in Connecticut include the existence of a loan of money, an absolute obligation to repay the principal, and the charging of an interest rate exceeding the maximum allowed by law. Charges that are considered interest include service charges, finance charges, and discount points, but do not include contingent or uncertain charges. It's advisable for individuals or entities involved in lending to consult with an attorney to ensure compliance with Connecticut's usury laws and to understand the specific exemptions and regulations that may apply to their situation.