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 Rhode Island, usury laws are codified under Title 6 of the Rhode Island General Laws, which governs Commercial Law - General Regulatory Provisions. Specifically, Chapter 6-26 details the legal interest rates and the penalties for usury. As of the current regulations, the general legal interest rate is 12% per annum unless a different rate is contracted for in writing. Any interest charged in excess of this rate may be considered usurious, except for certain loans such as those made by regulated financial institutions, which may be subject to different limits as set by state or federal law. The elements of a usury claim in Rhode Island include the existence of a loan agreement, an absolute obligation to repay the principal amount, and the charging of an interest rate exceeding the maximum allowed by law. Charges that are considered interest include service charges, finance charges, and discount points, but do not include contingent or uncertain charges. It's important to note that the usury laws can be complex and exceptions may apply, so consultation with an attorney for specific circumstances is advisable.