Usury

Usury

The act of lending money at an interest rate that is considered unreasonably high or that is higher than the rate permitted by law. Usury first became common in England under King Henry VIII, and originally pertained to charging any amount of interest on loaned funds. Over time it evolved to only mean charging excess interest, but in some religions and parts of the world charging any interest is considered illegal.

Charging interest on loans is not a new concept, but in 16th century England limitations were put on the amount of interest that one could legally charge on a loan. However, throughout history, certain regions have abstained from usury, as charging interest went against the religious principles of several different religions. One major reason why charging interest was considered forbidden is because early lending was done between individuals and small groups, which is much different from the modern banking system. Today, usury laws help protect investors from predatory lenders.


Investment dictionary. . 2012.

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  • Usury — (] In the 13th century Cardinal Hostiensis enumerated thirteen situations in which charging interest was not immoral. [cite journal | last = Roover | first = Raymond | title = The Scholastics, Usury, and Foreign Exchang | journal = Business… …   Wikipedia

  • usury — usu·ry / yü zhə rē/ n [Medieval Latin usuria interest, lending at exorbitant interest, alteration of Latin usura use, interest (i.e., sum paid for use of money), from usus use] 1: the lending of money at exorbitant interest rates; specif: the… …   Law dictionary

  • Usury — U su*ry, n. [OE. usurie, usure, F. usure, L. usura use, usury, interest, fr. uti, p. p. usus, to use. See {Use}, v. t.] [1913 Webster] 1. A premium or increase paid, or stipulated to be paid, for a loan, as of money; interest. [Obs. or Archaic]… …   The Collaborative International Dictionary of English

  • Usury — • Defines the church s view on money lending Catholic Encyclopedia. Kevin Knight. 2006. Usury     Usury     † …   Catholic encyclopedia

  • usury — u‧su‧ry [ˈjuːʒəri] noun [uncountable] formal FINANCE when someone lends people money and makes them pay an unfairly high rate of interest usurer noun [countable] * * * usury UK US /ˈjuːzjʊri/ US  / ʒɚI/ noun [U] …   Financial and business terms

  • usury — c.1300, from M.L. usuria, from L. usura usury, interest, from usus, from stem of uti (see USE (Cf. use)). Originally the practice of lending money at interest, later, at excessive rates of interest …   Etymology dictionary

  • usury — Excessive or illegal interest rates. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • usury — ► NOUN ▪ the practice of lending money at unreasonably high rates of interest. ORIGIN Latin usura, from usus a use …   English terms dictionary

  • usury — [yo͞o′zhə rē] n. pl. usuries [ME usurie < ML usuria < L usura < usus: see USE] 1. the act or practice of lending money at interest, now specif., at a rate of interest that is excessive or unlawfully high 2. interest at such a high rate …   English World dictionary

  • USURY — Biblical Law SOURCES If thou lend money to any of My people, even to the poor with thee, thou shalt not be to him as a creditor (nosheh), neither shall ye lay upon him interest (Ex. 22:24). And if thy brother be waxen poor and his means fail with …   Encyclopedia of Judaism

  • usury — An unlawful contract upon the loan of money, to receive the same again with exorbitant increase. Lassman v Jacobson, 125 Minn 218, 146 NW 350. The exaction, or an agreement for the exaction, of a greater sum for the loan, use, or forbearance of… …   Ballentine's law dictionary

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