Unlawful Debt Law and Legal Definition

Under the Racketeer Influenced and Corrupt Organizations (RICO) Act, an unlawful debt is defined as “a debt that is (A) unenforceable under state or federal law in whole or in part as to the principal or interest because of the laws relating to usury, and (B) which was incurred in connection with the business of lending money or a thing of value at a rate usurious under state or federal law, where the usurious rate is at least twice the enforceable rate.” Proctor v. Metro. Money Store Corp, 645 F. Supp. 2d 464 (D. Md. 2009)