Usurers

Usurers are individuals or institutions that lend money at unreasonably high interest rates or on terms considered exploitative, often beyond what is permitted by law or customary practice. The term originates from the Latin usura, referring to the practice of charging interest, and has historically carried a moral stigma in many cultures when rates were deemed excessive.

In many legal and religious traditions, charging excessive interest was condemned. Canon law and medieval Christian doctrine prohibited usury, and many states later established statutes to limit interest rates and regulate lending. Definitions of what constitutes usury vary by jurisdiction and time period, sometimes focusing on the rate itself, the use of collateral, or the presence of unfair terms.

In modern economies, most countries regulate lending through usury laws or consumer protection statutes that set maximum interest rates (or formulas to determine them) and prohibit deceptive practices. Lenders who exceed these caps or use abusive terms may face civil penalties, criminal charges, or loss of license. Despite legal restraints, informal or unlawful lending—often referred to as loan sharking—persist in some markets, sometimes targeting vulnerable borrowers with aggressive collection tactics.

Economists debate the social impact of usury rules. Proponents argue that caps prevent predatory practices and financial distress, while critics contend that overly strict caps can limit credit access for high-risk borrowers. The term “usurer” remains a loaded historical label and is sometimes used pejoratively, regardless of a lender’s compliance with current laws.

See also: usury laws, loan shark, interest rate cap, consumer protection in lending.