Laws that limit the maximum amount of interest charged on various types of loans are known as what?

Prepare for the Maryland Title Insurance Test with targeted multiple-choice questions, including hints and explanations for each to help you succeed. Get ready to ace your exam!

Usury laws are specifically designed to regulate the maximum interest rates that lenders can charge on loans. These laws exist to protect borrowers from excessively high-interest rates, ensuring that lending practices are fair and reasonable. By setting a cap on interest rates, usury laws aim to prevent predatory lending and promote responsible borrowing.

While trust-in-lending laws focus on disclosure requirements and ensuring that consumers are fully informed about the terms and conditions of their loans, they do not directly address the maximum interest rates. Creditors' rights laws pertain to the rights of lenders in collecting debts and handling default situations rather than interest rate limits. Consumer credit laws encompass a broader range of regulations related to credit transactions, but they do not specifically target the issue of maximum allowable interest rates like usury laws do. Thus, usury laws are the correct answer as they directly relate to the regulation of interest rates on various types of loans.

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