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 Vermont, usury laws are codified under Title 9, Chapter 4 of the Vermont Statutes Annotated, which governs interest and usury. The legal rate of interest in Vermont is 12% per annum when no rate is agreed upon. If a rate is agreed upon, it must not exceed 18% per annum on the unpaid balances for the actual time the balance is unpaid, unless otherwise specifically authorized by law. Loans that are subject to federal laws, such as the National Bank Act, may have different interest rate limits. The elements of a usury claim in Vermont 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 Vermont 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 certain types of loans, such as those made by licensed lenders, may be subject to different regulations and exceptions.