In some states, a lender who charges a usurious rate forfeits both the principal and interest on the loan.

Name: In some states, a lender who charges a usurious rate forfeits both the principal and interest on the loan.
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In certain states, laws against usury (charging excessively high interest rates) are strict enough that a lender found to be charging rates above the legal limit can lose the right to collect both the principal amount of the loan and any interest charged.

In Some States, a Lender Who Charges a Usurious Rate