Difference between revisions of "Usury"
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The medieval term for interest collected on loans of money. | The medieval term for interest collected on loans of money. | ||
| − | Islam prohibits usury or interest on loans. So does the Bible. | + | [[Islam]] prohibits usury or interest on loans. So does the [[Bible]]. |
==In modern times== | ==In modern times== | ||
Revision as of 08:57, March 1, 2007
In medieval times
The medieval term for interest collected on loans of money.
Islam prohibits usury or interest on loans. So does the Bible.
In modern times
Usury means charging an exorbitant, excessive, or illegally high rate of interest.
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.
In many states, such as New Jersey, the "legal rate of interest" is 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%), are illegal.