Void / voidable loan
A loan that breaks a state’s rate cap and is legally uncollectible — you may not owe it at all.
What "void / voidable loan" means
When a loan exceeds a state's usury cap, many states make it void or voidable — meaning the lender cannot legally enforce it. Depending on the state, that can wipe out the interest, the fees, or in the strictest states the entire balance, principal included.
This is the single most important concept for a distressed tribal borrower. In nine states, high-cost tribal loans are effectively void, so a collector's demand may be for a debt you do not legally owe. Check your state before you pay anyone.