Chapter 4, Problem 22AA

Solution

Kind of law in which the amount of interest charged for credit is restricted is to be explained.

Usury law is a law in which the amount of interest charged for credit is restricted. There has been different rates for different kind of consumer credit in some states. Credit cards and accounts have the maximum rates , for example many times it can be 18 percent per year. There are also consumer financial agencies which charges even more higher rates because the risk involved in those loans is very high.