Difference between revisions of "Usury"
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==In medieval times== | ==In medieval times== | ||
| − | + | '''Usury''' is the historical term for the lending of money at interest. [[Islam]] prohibits usury or interest on loans. So does the [[Bible]]: | |
| − | + | <blockquote> | |
| + | ''Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury: Unto a stranger thou mayest lend upon usury; but unto thy brother thou shalt not lend upon usury: that the LORD thy God may bless thee in all that thou settest thine hand to in the land whither thou goest to possess it.'' Deuteronomy 23:19-20 (KJV) | ||
| + | </blockquote> | ||
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| + | <blockquote> | ||
| + | (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> | ||
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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. | ||
==In modern times== | ==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. | 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. | 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. | ||
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Revision as of 20:21, April 14, 2007
In medieval times
Usury is the historical term for the lending of money at interest. Islam prohibits usury or interest on loans. So does the Bible:
Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury: Unto a stranger thou mayest lend upon usury; but unto thy brother thou shalt not lend upon usury: that the LORD thy God may bless thee in all that thou settest thine hand to in the land whither thou goest to possess it. Deuteronomy 23:19-20 (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)
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.
In modern times
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.