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| − | ==In medieval times==
| + | '''Usury''' is the historical term for the lending of money at interest. In modern usage, usury means the extraction of interest on a loan above the maximum rate permitted by statute. |
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| − | '''Usury''' is the historical term for the lending of money at interest. [[Islam]] prohibits usury or interest on loans. So does the [[Bible]]:
| + | In the United States, most states have usury laws limiting interest rates. This area of law is complex, particularly since, during the period of high inflation in the 1970s, the Federal government passed a law exempting national banks from state usury laws. Every state has its own usury law setting a maximum rate of interest that may be lawfully charged.<ref>http://www.lectlaw.com/files/ban02.htm</ref> |
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| | + | In many states the "legal rate of interest" may be 6%, but this only applies to rare situations and certainly does not mean that home mortgages at higher rates, or credit card finance charges (often as high as 18%, and even higher for dealings between companies), are illegal. |
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| | + | == Usury in History == |
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| | + | [[Islam]] prohibits usury or interest on loans, as do certain passages in the [[Old Testament]]: |
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| | <blockquote> | | <blockquote> |
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| | (If he beget a son that) ''Hath given forth upon usury, and hath taken increase: shall he then live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him.'' Ezekiel 18:13 (KJV) | | (If he beget a son that) ''Hath given forth upon usury, and hath taken increase: shall he then live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him.'' Ezekiel 18:13 (KJV) |
| | </blockquote> | | </blockquote> |
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| − | Many Christians ignore the teachings of the Bible in regards to charging interest on loans. This is an example of how some Christians disregard parts of the Bible because they believe they are no longer relevant to modern life. Most devout Muslims respect this prohibition however.
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| − | ==In modern times==
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| − | In the United States, most states have usury laws limiting interest rates. This area of law is complex, particularly since, during the period of high inflation in the 1970s, the Federal government passed a law exempting national banks from state usury laws. Every state has its own usury law setting a maximum rate of interest that may be lawfully charged.<ref>http://www.lectlaw.com/files/ban02.htm</ref>
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| − | In many states the "legal rate of interest" may be 6%, but this only applies to rare situations and certainly does not mean that home mortgages at higher rates, or credit card finance charges (often as high as 18%, and even higher for dealings between companies), are illegal.
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| | == References == | | == References == |
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| | <references/> | | <references/> |
| | [[Category:Law]] | | [[Category:Law]] |
| | + | [[category:legal terms]] |