Which term refers to charging interest at a higher rate than the maximum set by state law?

Usury specifically refers to the act of charging interest on a loan at a rate that exceeds the maximum allowable rate set by state law. Each state has its own regulations governing the maximum interest rates that lenders can legally charge, and when a lender exceeds this limit, it is considered usurious lending. The laws regarding usury are intended to protect consumers from exploitative lending practices and high-interest debt that can lead to financial hardship.

While predatory lending and loan sharking also involve unethical lending practices, they do not specifically define the act of exceeding legal interest rates. Predatory lending encompasses a broader range of deceitful tactics used by lenders to take advantage of borrowers, often targeting vulnerable populations, while loan sharking typically refers to unlicensed lending with exorbitant interest rates, which may or may not be legally classified as usury depending on the jurisdiction. Overcharging is a more general term that doesn’t specifically relate to interest rates in a lending context.