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 North Carolina, usury laws are codified under the North Carolina General Statutes, which set the maximum legal interest rates that can be charged on loans. The legal maximum interest rate for a loan is 8% per annum for loans under $25,000, unless the loan is subject to other specific statutory provisions. For loans above $25,000, the parties may contract for any agreed-upon interest rate, as these loans are generally exempt from the state's usury limits. The elements of a usury claim in North Carolina include the existence of a loan agreement, an absolute obligation to repay the principal amount, and the charging of an interest rate exceeding the legal limit. 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. It's important to note that certain types of loans, such as those made by licensed lenders, may be subject to different regulations and exceptions. Violations of usury laws can result in penalties, including the forfeiture of all interest and charges, and in some cases, borrowers may recover twice the amount of interest paid.