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 Mississippi, usury laws are codified under Miss. Code Ann. § 75-17-1 and following sections. These laws set the maximum legal interest rates that can be charged on loans. As of the current statutes, the legal rate of interest is 8% per annum when no rate is agreed upon. For written contracts, parties may agree to a rate of interest not exceeding an annual percentage rate of 10%. However, there are exceptions to these general limits, such as for loans made by licensed lenders, certain installment loans, and real estate transactions, which may have different allowable rates. The elements of a usury claim in Mississippi include (1) the existence of a loan of money, (2) an absolute obligation to repay the principal amount, and (3) the lender charging an interest rate exceeding the maximum rate permitted by law. Charges that are considered interest include service charges, finance charges, and discount points, but do not include contingent charges or other amounts that are not classified as interest under the law. Violations of usury laws can result in penalties, including forfeiture of all interest and charges on the loan, and in some cases, borrowers may recover up to twice the amount of interest paid.