, which limited the interest rates that could be charged on certain consumer loans, became binding, making such loans unprofitable.
Similarly, when market rates went above usury ceilings
, marginal borrowers were not able to get any credit at all.
In most states, rent-to-own contracts are exempt from usury ceilings
We are not seeing symptoms of that kind of widespread, classic crunch, as in the past when deposit rate ceilings or usury ceilings
limited the market's ability to adjust and forced cutoffs of credit.
Home buyers, especially in states that imposed usury ceilings
on loans, found it increasingly difficult to secure mortgages.
Loan terms--such as fee limitations, interest usury ceilings
, permissible accrual methods, late fee and grace period provisions, and prepayment penalty restrictions--are not only addressed, but treated appropriately based on how parties are licensed or chartered, as well as according to the transaction type.