Yet even with the tax break, Texarkana, Arkansas, still cannot compete with Texas because of the usury law.

ECONOMIST: Usury laws: The bad side of town | The

Further, the California usury law is one of the strictest of its kind in the nation, with any annual interest rate exceeding 10% deemed usurious.

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Little South Dakota agreed to get rid of its usury laws, and Citibank, by exploiting a loophole in federal law, set up its card operations there and was able to evade usury laws throughout the nation.

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