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Usury
is the practice of charging unreasonable amounts of interest on a loan.
Usury
laws vary considerably from state to state and country to country. Some
states and countries have no usury laws at all, while others have very strict
standards.
The
Scam: Scam artists would have one believe that
enormous profits can be realized by purchasing financial instruments, such as LETTERS
OF CREDIT, PROMISSORY
NOTES and DEBENTURES,
or TREASURIES
at substantial DISCOUNTS
ranging from 25% to 10% of the their value, and then reselling them for full
value. For instance, that a Letter of Credit for $425,000 can be purchased
for a mere $425.00.
Whereas
it is possible for outrageous interest to be charged on one of these
instruments, it is also true that the issuer of the instrument must be able to
repay the entire amount within a given period of time. If the amount
due exceeds the financial capability of the issuer, then there is no profit,
only default and possible bankruptcy.
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