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 Florida, usury laws are designed to limit the amount of interest that can be charged on a loan to protect borrowers from excessively high rates. The legal maximum interest rates are set by Florida Statutes, specifically under Chapter 687, which governs interest and usury. As of the knowledge cutoff date, the general usury limit in Florida is 18% per annum for loans less than $500,000, and loans that are $500,000 or more can have an agreed-upon rate of up to 25% per annum. These rates apply unless another specific law provides an exception. The elements of a usury claim in Florida 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 the statutory maximum. In Florida, interest is considered compensation for the use, forbearance, or detention of money. Charges that are not considered interest include time price differentials and legally permitted additional charges in connection with an extension of credit. Service charges, finance charges, and discount points are typically treated as interest for the purposes of usury, while contingent or uncertain charges are generally not regarded as interest.