Usury Ceilings and DIDMCA
Title V of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA) preempted certain state usury ceilings - the legal interest limits that may be charged on loans. It provided a federal ceiling as an alternate to state ceilings on some loan transactions and left rates for other types of loans to be determined by the market. The preemptions were permanent in most cases, although in one case the preemption was temporary and has already expired. In all cases, the federal preemption could be overridden by individual states.