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 Missouri, usury laws are designed to limit the amount of interest that can be charged on loans to prevent lenders from imposing excessive rates on borrowers. The legal maximum interest rate that can be charged in Missouri is generally 10% per annum unless the parties agree in writing to a higher rate, in which case the maximum is the market rate or 20%, whichever is lower. The elements of a usury claim in Missouri 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 legal limit. Interest is defined as compensation for the use or borrowing of money, and it does not include incidental charges such as time price differentials that are not deemed interest by law. However, typical charges such as service charges, finance charges, and discount points are usually considered interest and can be scrutinized under usury laws. Charges that are contingent or uncertain do not typically qualify as interest under these statutes.