Concept in Definition ABC

Usury is understood to be the act or action by which an individual or an entity obtain profits from the very high collection of interest on a loan or on almost any type of loan. transaction banking, commercial or financial. Usury is a phenomenon that allows the person who carries it out to get rich greatly, but it means a clear and profound impoverishment for those who you must pay the interest since they are uncontrollable and can end up being even much higher than the loan requested in the first place instance.

In economic and historical terms, usury is always understood in negative terms since it refers to some type of exploitation that one person or entity is suffering on the part of another. In many cases, this use is known and chosen by the person who suffers it, but in most situations, the urgency or emergency that a conflict may require in its resolution makes these people have no other means than to resort to usurers of different types regardless of the price to pay in the long term. This means that if a person urgently needs to access an important capital loan, an urgency that does not allow them to wait for the terms officials of banks and other financial entities, you should probably end up resorting to the unofficial loan that any usurer can perform. In this way, he will have the cash available much more easily but the interest to pay for it will be enormous in

comparison with 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 can collect the interests that he considers appropriate regardless of whether those interests are fair, high, excessive, etc. Usury, therefore, is a crime that must be fought and that generates significant economic damage not only for individuals but also for small and medium-sized entities, companies or organizations.

Topics in Usury