What is the term for charging a higher rate of interest than is allowed by law?

The term for charging a higher rate of interest than is allowed by law is usury. Usury laws are designed to protect borrowers from excessively high-interest rates that can lead to financial exploitation and unmanageable debt. These laws vary by jurisdiction, but they typically set a maximum interest rate that can be charged on loans. Charging interest above this legal limit constitutes usury and can result in penalties for the lender, including fines or the potential invalidation of the loan agreement itself.

In contrast, fraud refers to deceptive practices aimed at securing unfair or unlawful gain; default indicates a failure to fulfill the obligations of a loan, such as missing payments; and bribery involves offering something of value in exchange for influence or actions, which does not relate to interest rates on loans. Each of these terms relates to different legal and ethical issues within financial dealings, but only usury specifically pertains to the unauthorized charging of excessive interest.