West S Encyclopedia Of American Law Full Article From

Usury is a person or entity to provide unsecured loans at illegally high interest rates with repayment often force, individual extortion or threats of violence.

Throughout history, usury laws, the loan sharks were common. [ Description Required ] Many moneylenders, skirts between law and outrageous activities. In the modern Western world, the loan sharks have been the ability of the criminal underworld , but less common in life is not in compliance.

United States 19th-century salary lenders

In the late 19th century America, the statutory interest rate is made small loans unprofitable, microcredit borrowers lends little time can be seen as an irresponsible person could not manage the budget is frowned upon by society Remashi other. Banks and other major financial institutions, loans to stay away from such a small time. Many lenders offer small loans at illegally high interest rate revenue, however, was there. They presented themselves as the legitimate operation of the office out openly. Stable and good work (and reputation to protect regular income), married (possibly to escape the city is low), and borrowing for legitimate motives: they are your customers feel good risk was determined. See Also loanmax manassas va . Gamblers, criminals and other shady, untrustworthy types have been avoided. They fill the borrower has signed a seemingly legitimate. These contracts are legally enforceable, but no, they were evidence of the loan the lender can use to blackmail at least a delinquent .

Coaxial cable to delinquent setting pay, the lender might threaten legal action. Check out also loans belleville, il . Since the loan was illegal, it was a bluff. Lenders, borrowers fall prey to the ignorance of the law. See Also loan sharks in brooklyn, ny . In addition, lenders debt despise such employees, in many cases, the borrower's employer fired them, frustration, shouting demands a borrower's home or outside, commissioned public shaming. Check out also loan money wired right now . Whether out of desire to protect his reputation and gullibility, the borrower paid and usually succumbed.

Many customers were employees of major corporations such as railroads and public works. In a large organization, gave a powerful form of intimidation of usury rules, they are likely to dismiss an employee because of a debt that was more humane. Check out also loans fast and easy . Lenders, rather than large organizations have done this, knowing that the information collected and a number of small business was easy. See Also loans for 600 dollars . Because large companies had great potential for more job security and promotion of employees have sacrificed much in order to ensure that they are not fired. Check out also loans akron ohio . Usury is also to provide information on the number of employees, large companies can bribe the accountant. Regular paydays and salaries are negotiated repayment plan simple. [1]

The size of the loan and repayment plan, in many cases, means were adjusted to the borrower. Small loans, as there was a higher interest rate, as the cost of tracking and pursuit, the delinquent was the same whatever the size of the loan. In addition, the lender delinquent behavior change: Some readily grant an extension, and was slow to harassment and reasonably generous, on the other hand, the unprincipled (like imposing delinquency) from the borrower as long as they can those attempting to milk. See Also loan ompanies in edinburg texas .

Salary loan, because of the shady dealings, these business owners to hire an administrator to run their offices and indirectly, often hidden from public view. When his trade to expand further to other cities, in order to avoid attention, often the owner will find a new company under a different name than the existing companies to expand his very leviathan pronounced . See Also loans fast .

Penalties for illegal lenders were to be mild. Loan was illegal misdemeanor , and the penalty was forfeiture of interest and principal as well as possibly. See Also loan today with no fees . Borrowers could not afford to do so typically him, when the accused. See Also loans for military spouses . However, they are imposed so far [2]

Contrary to the lender's salary, the social elite, including businessmen and charities, was standing at the top. Businessman, they unconsciously ("Do you pay up, and I'll tell your boss or we would have fired you"), and lenders to provide a means of threatening a customer by the industry as it supports, were encouraged to avoid laying off employees debt loan sharks. In charity, providing legal assistance to troubled borrowers. This fight is a unified draft law for small loans with a new class of existing as a licensed lender, culminated in the. The first law in several states in 1917, was enacted, and all that was adopted by a handful of states in the mid-20th century. [3] The statute of the model, with 3.5 percent interest loans of up to $ 300 and less consumer protection mandates (42 percent), at the level of interest for small loans. Lenders, customers had to give a copy of all signed documents. Was banned, including additional costs such late fee. Lenders could not accept anymore attorney or a confession of Judgement than the customer. The law of these licenses, it is impossible to pass themselves off high-interest legal financial institutions. Microcredit is starting to become more socially acceptable, banks and other large institutions began to offer them as well.

Gang in the 20th century

In the 1930s and 1920s, the American prosecutor began to notice a bad appearance of the new breed of lenders to use violence to enforce the debt. A new method for small lenders, that threaten the customer with a semblance of legality had been almost impossible, and they either have a lot of customers vulnerable to shaming because it was self-employed or already questionable was. Thus, violence, however, their only tool was not important. These loan sharks, which means less bureaucracy and customer documents and more discretion for the lender, operates more than informal lenders pay more. They are also the lenders were willing to provide legal services to high-risk borrowers to touch it.

But the threat of violence is rare, has not been traced. One possible reason is that the borrower because it could not hurt his work is that there is a possibility that it could not mean him to repay the debt. Check out also loan over the phone . Many regular borrowers to understand the threat was almost a cliff, you can get off the arrears. More consistent results, borrowers defaulted loans in the future obligation for those who were seriously relied on loan sharks on a regular basis, it is detached from what was. [4]

One important market for violent loan sharks, illegal gambling operators could not expose itself to the law in order to legally collect the debt was. They supply credit, loan sharks to help to collect their payments from punters. Other criminals were often in flux and fate thief is, furnishing, and these connections are also on loan sharks have been allowed to act as a fence. [5] Another type of high-risk customers couldn "t was a small businessman in financial difficulties can legally get a loan.

Violent loansharking typically run by crime syndicates, such as: Mafia . Check out also loans in irving texas . Many of these were former pirates have needed a new line of work after the ban . Towards the 1960s, growth was adjusted to loan sharks than ever before, borrowed from usury and other borrowers were able to pool information on borrowers and size than to risk, one did not try to repay the loan Please check it. Formidable reputation in large gangs like the Mafia or the threat of violence usury is more reliable. Check out also loan in minutes .

Link to Mafia "Buy a salary," the origins of crime, 1920

Was intended to starve Reform Act of loan sharks to extinction, evolution and prosperity of this kind of predatory lenders. Outlawed after the high-rate salary lending, some bootleg vendors' products as a reworking salary buying ". Check out also loans in fort worth tx . They claimed to have been purchased at a discount future wages had not been financed. Through the 1920s to close a loophole that had slipped through buyer of a new draft law salaries Uniform Small Loan, this form of loansharking proliferated in the 1930s. [6] salary loan sharks buying, after the world, it continues to run in the second of several southern states usury rate is that it could not conduct business and personal finance company licensed was low. [7]

Post-crime

Organized crime is crime after being conquered by the law of small loans for high-rate loans, cash advance began to enter the business of the 1930s. See Also loans by text . The first report of mob loansharking surfaced in New York City in 1935, and 15 years, underworld money lending, was apparently confined to that city. [8] For example, the Chicago syndicate "juice" Record operation is not until the 1950s.

At the beginning, loansharking's underworld catering to a group of buyers and lenders offer the same salary was a small business loan. Who is unable to obtain pirated lender credit and their income is considered too low or the risks they are inadequate is a company licensed to do so. Companies operating within the usury cap is off, is about half of all applicants tended to carry out large loans to married men with stable employment and decent income.

Who could not legally obtain a loan year 36% 42% cash advance can be secured from the gang for a week in small-business loan rates 10% or 20% progress. Mob loans, because they are not fixed in the normal legal means, a debtor pledged as collateral. [9]

In its early stages, the majority of the mob loansharking, payday loans were made of. Many customers were office workers and factory hands. Loan fund for the operation of these numbers come from the income of the racket, and was distributed by the low top boss echelon loan sharks for weeks at a rate of 1% or 2%. See Also loan in 1 hours . 1 952 B - movie starring "usury", George Raft , offers a glimpse of mob payday lending. Brooklyn's waterfront was a different place each operation of the underworld payday advance large around the middle of this century.

1960-present prime

Over time, moved away from a mob loan sharks labor intensive rackets. Check out also loan fast . By the 1960s, preferred customers were small businesses. Business travelers are engaged in fraud and foreclosure in the case of default or for money laundering, had the advantage of having the assets or may be used. As was true criminals gamblers with additional funding required for these operations was another lucrative market. In 1970, a mob salary lending operations in the United States seemed to have been withered away. [10]

Age during the height of 1960, loansharking the underworld, was estimated to be the second most lucrative franchise of organized crime in the U.S. after illegal gambling . Filled with sensational stories of debtors beaten newspapers of the 1960s, harassment, was killed by a mob loan sharks and sometimes. Careful study of the business yet, have raised questions about the frequency of violence has actually been adopted. "Even if the relationship between creditors and debtors, the possibility friendly VIG to need each other "and" juice ", was prohibitive. Only up to their obligations to the customers interviewed had been threatened a Mafia loan business 115 FBI agents in one city. None had been beaten. [11]

Non-Shark Mafia

Organized crime, that no monopoly on the black market loans. See Also loan for unemployed . Many of the vest-pocket lenders are charging usurious interest rates of interest for cash advances, operated outside the jurisdiction of organized crime. These informal networks of credit is not rarely attracted the attention of authorities, and not provided by licensed lenders, flourished in the population. Even today, after the rise of corporate payday lending in the United States, unlicensed loan sharks continue to work with immigrant enclaves and low-income areas. They lend money to people who work in the informal sector , by check-cashing creditors or who were deemed too dangerous. Seized the assets in place while others, in part, defeated the juvenile delinquents. That rate is like the mob loan sharks just days gone by, you run 10% -20% in the week. [12]

British loan sharks

A study by the government and other institutions, 165 000 to 200,000 people are estimated to be illegal in the UK care financing. Are treated as higher-level crimes to law enforcement and critical links to organized crime related violence due to loan sharking. [13] UK payday loan "sharking loan on the law" has been described as. Check out also loans for unemployed women . [14] The campaign group just off our debt was launched in 1999.

Non-standard lenders in the U.S.

In the U.S., lenders have a license to provide services to the borrowers can not qualify for standard loans from mainstream sources. Whereas mainstream lenders do not provide the borrower does not have a bank account electronically and will only work more, they are small, non-standard lenders often operate in cash. Terms such as subprime loans [ citation if necessary ], "non-standard consumer credit" [ reference needed ], and payday loans [ reference needed ] Often, this type of connection used in consumer finance . Availability of these products are illegal, but rarely have been exploitative loan sharks, these legal lenders have been accused of acting in an exploitative way. - For example, payday loan business is effectively "payday advance" the expansion of cash for their services, "service fee", because it can run the three charges, short-term (one or two Over more than a week) 5% of the principal amount have come under fire for charging the loan. See Also loan lenders only . Alternatively, instead of just collecting interest on short-term loans, cash salary of "service" to the claims that are charged for, the law strictly regulating the cost of wages, effectively bypassing You can. Check out also loans fast cash .

Payday loans

Has lent money at high rates of interest on the security of postdated check to get the payday advance business license, the obligor of the trap due to the frequent, short loan collection practices illegal and violent has been described by critics as loan sharks and their high interest rates down. Today's payday loan is a loan close cousin of the salary of the early 20th century, "Shark" products, the specific epithet, which was originally applied, they have been legalized in several states today The.

Compared to 2001, lending rates short charged by lenders payday syndicate of organized crime outfit in Chicago, California, payday loan, the borrower (generally a day or 14), the interest rate charged for Depending on when it is repaid by the payday loan said it might be much higher than mortgage rates made by the same organized crime syndicate. [15]

Japan Yamikinyu

Regulation of money lenders typically are much looser than those of banks. In Japan, the usury law does not require registration only of each province . In Japan, as the decades-long depression lingers, and are reluctant to spare money and tighter bank regulations, it is illegal money lending business and the social problems . Moneylenders illegal, in general (which 'the' meaning "to - the Go" "to give" called ("To" and 10 meaning "I" meaning three) has been or (in Japan language, one hundred million and 2.675% per year of 10 million yen, or about 1.442% to claim 30 or 50% interest for 10 days, "run" meaning five)). It can set the maximum interest rate is 29.2% against the law. They are usually banks, legitimate consumer loans, do business with people who can not get more money from your credit card.

Ah Long in Malaysia and Singapore

Ah Long (derived from the Cantonese phrase'???'( Jyutping: daai6 ji5 lung1) is a term for illegal loan sharks in Malaysia and Singapore they can get loans from banks or other legal sources lend money to people who do not. to target gamblers habitual little. They [rate very high (about 40% per week / month) charge a citation needed ], and threaten violence often (and to manage it) towards the person fails to pay on time. See Also loan rite now . [16] [17]

Ah Long tactics

People are not paid in time, Oh the long, splash spray, or a threat of violence to describe the threat of red paint on the walls of their homes and property, the borrower will repay the loan at the end The. A common use of the painting, meaning "$ P $ O" contains the letter "to borrow money and pay the money. Check out also loan max ." According to local police authorities, whether the borrower was beaten, had their property damaged or destroyed, there was some incident of the suicide victims. [16]

A pig's head from time to time as well as the type of threat, loan "delinquent" who as "marking" as a way of being hung out of the house of the borrower.

Oh the long and sometimes break into the victim's house and steal items of value of the loan. This method is also used to save labor time in general. [ citation needed ]

Recent cases show an identification card to borrowers in a giant banner Oh well, shows that long for a fence post. Since AH is only admire from a borrower must have an ID card, this tactic is becoming common for the borrower pays to the public until it Shames.

Borrowers often use their old ID card with the intention to pay what they owe, to borrow money. As a result, the price to pay to receive the tactics of intimidation ah long unsuspecting home owners. They are not a borrower, ah do not stop intimidation will continue to harass them long.

Please also see. Reference
  1. ^ Loansharking in U.S. cities. PG 154
  2. ^ "Loansharking cities in America: Historical Analysis of the marginal firm," American Journal of Legal History 21 (2). 125-156. In April 1977. JSTOR 845 211 .
  3. ^ David Gallert, Mon and Jeffrey Walter Hilborn, a small loan law: small (: Russell Sage Foundation, 1932, New York) History of the loan regulations.
  4. ^ Kelly, Lin Koh Samui, Schatzberg of organized crime. Handbooks. PG 156
  5. ^ Loansharking in U.S. cities. PG 149
  6. ^ George Birkhead Joe Gisler, Kansas City, Missouri (Kansas City Conference on Personal Finance Act, 1938) Purchase of salary.
  7. ^ Victor Meador of Georgia, loan sharks (Washington, DC: American Bar Association, 1949).
  8. ^ "27 arrested by Dewey Usurers sudden movement to split a huge racket," New York Times (October 29, 1935), 1 page.
  9. ^ - criminal usury industry, unpublished Ph.D. thesis (University of Harvard, Cambridge, MA, 1968) study of "When hip" Jonzaidoru.
  10. ^ Reuters, Peter, a bad organization of the market: Economic Analysis (Washington, DC: U.S. Department of Justice, 1985).
  11. ^ Annelise Anderson, the business of organized crime (Stanford: Hoover Institution Press, 1979), p.66.
  12. ^ a Sudhir Venkatesh, Off Book: Urban Poor (Cambridge, MA: Publishing Harvard University Press, 2006) of the underground economy, pp.140 - 400 from 141,399.
  13. ^ Bahra, Parminder, Bennett, Rosemary (August 07, 2009). "Violence in prostitution, coercion, threat of loan sharks of the family," Times (London). . Crime/Article6742115.ece Http://Www.timesonline.co.uk/Tol/News/Uk/ . View May 11, 2010.
  14. ^ Endlegalloansharks.org.uk accessed April 04, 2011
  15. ^ James, Steven (July 19, 2001). "Usury ancient evil." Sacramento News & Review (Sacramento, CA). Retrieved March 06, 2010.
  16. ^ b is Please do not borrow from loan sharks.
  17. ^ Since the plant is empty, the loan sharks are beating the owner
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