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 Massachusetts, usury laws are designed to limit the amount of interest that can be charged on a loan to prevent lenders from imposing excessive rates on borrowers. The legal maximum interest rate for most loans is 20% per year, but there are exceptions for certain financial institutions and types of loans, such as those made by banks or for commercial loans, which may have different limits or be exempt from usury laws. The elements of a usury claim in Massachusetts 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 amount permitted by law. Interest is defined as compensation for the use or forbearance of money, and it typically includes service charges, finance charges, and discount points. However, certain charges that are contingent or uncertain may not be considered interest under Massachusetts law. It's important for both lenders and borrowers to be aware of these regulations to ensure compliance and avoid potential legal disputes over usury claims.