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 West Virginia, usury laws are designed to limit the amount of interest that can be charged on a loan to prevent lenders from imposing excessive rates on borrowers. The legal maximum interest rate that can be charged in West Virginia for personal loans is 6% per annum if there is no written contract. When a written contract is present, the maximum interest rate is 8% per annum, as specified in West Virginia Code §47-6-5. The elements of a usury claim in West Virginia include: (1) the existence of a loan of money; (2) an absolute obligation on the part of the borrower to repay the principal amount; and (3) the lender charging an interest rate exceeding the legal limit. Interest is defined as compensation for the use or forbearance of money, and it does not include certain charges such as time price differentials, which are not considered interest under the law. However, typical charges like service charges, finance charges, and discount points are usually regarded as interest for the purposes of usury. Charges that are contingent or uncertain do not generally fall under the definition of interest for usury claims. It's important for both lenders and borrowers to be aware of these regulations to ensure compliance with state law.