In many states, usury laws are established to?

Usury laws are designed to protect consumers by establishing a maximum rate of interest that lenders can charge on loans. These laws aim to prevent lenders from taking advantage of borrowers by setting excessively high-interest rates. By capping the interest rates, usury laws ensure that borrowing remains fair and accessible, reducing the risk of borrowers falling into debt traps due to unmanageable interest charges. This regulation is important for maintaining ethical lending practices and safeguarding the financial well-being of individuals and businesses. This context clarifies the essential role of usury laws in promoting responsible lending and protecting consumers against predatory lending practices.