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 Kansas, usury laws are codified under the Kansas Statutes Annotated (K.S.A.), which set the maximum legal interest rates that can be charged on loans. According to K.S.A. 16-201, the legal rate of interest is 10% per annum when no other rate is agreed upon. For consumer credit transactions, K.S.A. 16a-2-401 provides a maximum annual interest rate which varies depending on the type of loan and other factors. The elements of a usury claim in Kansas 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 exceeding the maximum allowed by Kansas law. Interest is defined as compensation for the use or forbearance of money, but it does not include certain charges such as time price differentials, which are not considered interest under the law. Service charges, finance charges, and discount points are typically treated as interest for the purposes of usury unless they fall into categories that are explicitly excluded by law or are permitted to be charged in addition to interest in a credit extension. Contingent or uncertain charges are generally not regarded as interest for usury purposes.