What is the Meaning & Definition of usury
Economic and historical terms, usury is always understood in negative terms since it refers to some kind of achievement is suffering a person or entity from another. In many cases, this exploitation is known and chosen by the person who is suffering, but in the majority of situations, the urgency or emergency that a conflict may require in its resolution makes that these people do not have other means that resort to usurers of different type no matter what the price to pay in the long run. This means if a person need urgently to access an important loan capital, urgency that doesn't allow you to wait for the official deadlines for banks and other financial institutions, should probably end by resorting to the unofficial loan one loan shark might take. In this way, you will have much more readily available cash, but interests to pay for it will be huge compared to the legal system.
It is important here to mark that the Act of usury is an illegal act. This is so since it falls outside the circuit official or legalized. In this way, by not respecting the legal structures of loans and financial transactions, the usurer may charge the interests it considers appropriate regardless of whether those interests are fair, are high, are excessive, etc. Usury is a crime that must be fought and which generates important damages in the economic level not only of individuals but also of small and medium-sized entities, companies or organizations.
Article contributed by the team of collaborators.