Do You Believe in Usury?|
I'm not sure how to answer the interpersonal loan question. If I make a loan to a friend, I don't expect the government to stick its nose into my business. On the other hand, loan sharks are a problem.
I don't actually know the law in the last question, though I always thought that the reason so many credit cards were based out of Deleware had to do with Deleware's less strict laws compared to other states.
The last question has checkboxes because more than one answer is right.
According to usurylaw.com (which may or may not be correct), Delaware limits interpersonal oans to 5% above the federal interest rate, but "Banks, savings and loans, and credit unions that are state-chartered are not subject to the usury laws that are on the books in Delaware for other types of person, non-commercial loans. Likewise, loans that are made by federally chartered financial institutions are not subjected to the statutory provisions in Delaware that pertain to usurious interest rates and related lending practices and procedures."
Michigan also has fairly strict interpersonal usury laws, and similar exceptions for state and nationally chartered lending institutions.
Though when we make loans to friends in a personal, we also don't charge interest as a rule. (It's different in a business context, obviously.)