In modern financial parlance, the term commonly used to refer to usury is predatory lending. This term encompasses practices that involve excessive or abusive interest rates or other exploitative terms, often targeting individuals who are in vulnerable financial situations. Predatory lending can manifest in various forms, including payday loans, car title loans, and subprime mortgages, among others.
The concept of usury has deep historical roots, often associated with charging unjust or exorbitant interest rates on loans. While the term “usury” may still be used in legal and academic contexts, in everyday language, individuals who engage in exploitative lending practices are often referred to as loan sharks. These individuals typically operate outside the bounds of regulated financial institutions and may resort to coercive or predatory tactics to extract payments from borrowers.
In the realm of consumer protection and financial regulation, combating predatory lending remains a significant challenge. Governments and regulatory bodies implement measures to safeguard borrowers from falling victim to exploitative lending practices. Such measures may include interest rate caps, mandatory disclosures, and enforcement actions against lenders engaging in predatory behavior. However, despite these efforts, predatory lending continues to pose a threat to vulnerable consumers, highlighting the ongoing need for vigilance and regulatory oversight in the financial sector.
(Response: The modern term for usury is predatory lending.)