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 Utah, usury laws are codified under Utah Code Ann. § 15-1-1, which sets the legal maximum interest rate that can be charged on a loan. As of the knowledge cutoff in 2023, the legal rate of interest is 10% per annum if no rate is agreed upon. If the parties agree to a higher rate, it must be in writing, and the agreed rate must not exceed the federal post-judgment interest rate plus 2%. Loans for personal, family, or household purposes have different regulations under the Utah Consumer Credit Code, which often allows for higher interest rates but requires clear disclosure to the consumer. Charges that are not considered interest include time price differentials, which are not penalized as usury. However, service charges, finance charges, and discount points are typically treated as interest and can be scrutinized under usury laws. Contingent or uncertain charges are generally not classified as interest for the purposes of usury. It's important to note that certain types of loans, such as those made by licensed lenders, banks, and credit unions, may be exempt from state usury limits under specific circumstances.