Usury & Extortion

One of the earliest principles of money lending is a law against usury.

If you lend money to any of My people who are poor among you, you shall not be like a moneylender to him; you shall not charge him interest. (Exodus 22:25 NKJV)

This is the exact opposite of how western banks operate today. If a person is rich and deposits large sums in a bank, then they are given special low interest borrowing rates. Whereas if a person is poor, they are charged higher interest rates, because they are seen as a higher risk. Moral responsibility towards the poor is not a consideration in the calculations. Yet, those who claim to believe there is a God, are called to operate in a different manner.

Banks are known for their reluctance to lend money to the poor, and if they do, they do so at punitive interest rates, not charged to the rich. This makes good sense economically, because the poor are a greater risk. However, it only makes sense in an economy that does not include the highest morals in its calculations. There is a moral principle which overrides the mathematical calculations of risk. It is the social responsibility of the rich towards the poor.

If one of your brethren becomes poor, and falls into poverty among you, then you shall help him, like a stranger or a sojourner, that he may live with you. Take no usury or interest from him; but fear your God, that your brother may live with you. You shall not lend him your money for usury, nor lend him your food at a profit. (Leviticus 25:35-37 NKJV)

Banks that still make enormous profits each year, after bank managers have already received good salaries, and CEOs have been paid an incredible amount, have no moral excuse. Many CEOs earn more their first week on the job than ordinary workers earn all year. Some earn a thousand times an average wage. Nobody needs to take that much from the community, except due to pure greed.

Surely banks can consider taking a portion of their profits, and plow it back into the community, and bear some of the burden of the destitute and oppressed. But, no, shareholders expect to receive those profits in dividends, and who really cares if the poor suffer? Well, God does and so should we!

This is such an important principle that it is repeated in Deuteronomy, a book where the law is repeated and where the Ten Commandments are broken down and applied to a variety of life situations.

You shall not charge interest to your brother—interest on money or food or anything that is lent out at interest. (Deuteronomy 23:19 NKJV)

The word brother here refers to a national brother, not necessarily a direct relative.

One may ask, how can banks possibly pay their employees if they cannot charge interest? First let’s ask, how can large banks possibly pay their CEOs grossly offensive robber-baron salaries? When people take social responsibility, then there are other ways to be paid other than oppressing the poor with unlivable interest charges. There is nothing against banks charging fees for services rendered instead of usury.

What profit is there in not charging the high-risk poor usury? If there is no God, who cares? But, if there is a God, then it is He who provides a dividend not seen on usual profit projections, a curse or a blessing on our business dealings. Those who take usury from their dealings with the poor can overcome generational curses placed upon our lending institutions by decades and centuries of greedy bankers.

Who has withdrawn his hand from the poor And not received usury or increase, But has executed My judgments And walked in My statutes—He shall not die for the iniquity of his father; He shall surely live! (Ezekiel 18:17 NKJV)

This is not just a risk calculation but also a live or die situation for the lender.

The use of interest for legitimate purposes of trade was never forbidden in ancient Israel. It was intended as a national law protecting the poor, that usury was off limits in ordinary money lending to private citizens. Though it may not compute in lending calculations, there is a promise of business longevity for those who abide by moral lending principles. The longevity of a business is difficult to project in foresight, but God’s blessing can be clearly seen in hindsight.

He who does not put out his money at usury, Nor does he take a bribe against the innocent. He who does these things shall never be moved. (Psalm 15:5 NKJV)

Here is a new word that goes along with usury. Are lenders also guilty of extortion? When a lender uses usury and extortion, his position will not be blessed by God, but one who is generous, especially to the poor, will eventually replace the gouging bully, because he will lose out. His replacement will be as compassionate as possible within the limits of his authority.