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 Montana, usury laws are codified under Title 31, Chapter 1, Part 1 of the Montana Code Annotated (MCA). These laws set the maximum interest rates that can be charged on loans. As of the current statutes, the legal rate of interest is 10% per annum when no other rate is agreed upon. For written contracts, parties may agree to an interest rate not exceeding 15% per annum. The elements of a usury claim in Montana 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 allowed by law. Interest is defined as compensation for the use or forbearance of money, and it does not include certain charges such as time price differentials that are not deemed interest by law. Service charges, finance charges, and discount points are typically considered interest and thus can be subject to usury laws if they result in an effective rate above the legal limit. However, contingent or uncertain charges may not be considered interest under Montana's usury statutes.