Best Real Estate Lawyers in Tempe, AZ

USURY – Historical References & Bankruptcy Usury is the practice of making unethical or immoral monetary loans that disproportionately benefit the lender The term can be used in a moral meaning—condemning, profiting from the misfortunes of others—or in a legal sense, where an interest rate is charged that exceeds the highest rate allowed by law. A loan may be deemed usurious due to exorbitant or abusive interest rates or other characteristics established by state law. A usurer is someone who commits usury, however in modern colloquial English, they may be referred to as a loan shark. The creditors are happy to give everyone credit, whether or not they qualify. These creditors have absolutely no regard to the person’s ability to repay the credit. The creditor makes more money when a borrower is late, defaults on a loan, or overdraws the credit limit or bank account. Therefore, that creditor is gambling that they will earn more from borrowers in interest, penalties, and additional charges then that creditor will lose as a result of bankruptcy. They are leveraging their losses by giving out as much credit as everyone’s mail and email boxes can hold.