Usury

"The parties to a loan, purchase money loan, advance, commitment for a loan, or forbearance, other than a credit card, open‑end, or similar loan, may contract in writing for the payment of interest. The rate may be any rate agreed upon by the parties where the principal amount is more than $25,000. Where the principal amount is $25,000 or less, the rate must not be greater than the rate set by the Commissioner of Banks each month. N.C. Gen. Stat. § 24-1.1

If the principal amount of a loan is less than $300,000, no lender shall charge, receive or require any borrower to pay any sum of money, thing of value, or other consideration other than that which is pledged as security or collateral together with fees and interest. N.C. Gen. Stat. § 24-8

The parties to an equity line of credit may contract in writing for interest at rates which may not exceed the maximum rates permitted under G.S. 24‑1.1; provided, however, that the parties may contract for adjustable or variable interest rates, so long as the rate in effect for a given period does not exceed the maximum rate. N.C. Gen. Stat. § 24-1.2A

The knowing taking, receiving, reserving or charging a greater rate of interest than permitted is a forfeiture of the entire interest which the note or other evidence of debt carries with it, or which has been agreed. If a greater rate of interest has already been paid, it may be recovered back in twice the amount. N.C. Gen. Stat. § 24-2

An action for usury must be brought within two years. N.C. Gen. Stat. § 1-53"

Thus, a separate cause of action accrues for each payment made, with the cause of action being barred two years after the payment is made. Henderson v. Security Mortg. & Fin. Co., 273 N.C. 253, 264 (1968). The statute of limitations on a cause of action for the forfeiture of all interest under the note, however, runs from the execution of the note, and thus, is barred two years after execution of the note. Haanebrink v. Meyer, 47 N.C. App. 646 (1980).

Late fees on loans governed by North Carolina’s Usury Statutes are capped at 4% and are considered interest. N.C. Gen. Stat. § 24-10.1 (2012).