Are there laws against usury?

So as jay walking is against the law but some are doing it, right? The problem is some hawkish businessmen are preying on people who cannot build their credit with local banks because applying is so stiff, so many documents to submit and bank does not take risks. Even credit cards issuers are so greedy at 3.5% per month interest. Most banks if not all, does not support microlending programs of the government and SMEs eventhough the government gives much incentives to provide opportunities to small time businesses to flourish. You may see some business organizations' comments on the negative thing about doing business in the Philippines is how it is so hard applying for a loan and is a very tendious process, aside from red tape, graft, infratructure and stability. Government is trying to speed up the process by e-b2b but still is a long way to go.

Some businessmen would like to bankroll their business but lacks monetary liquidity and turn to these credit hawks to ask them to lend money. This is a business opportunity to them until such time that our bankers think of reaching out to SMEs to provide lending and capital expansion, monetary liquidity opportunities, extensively.

Usury Law Philippines

Marc Yes, usury is a crime. You mentioned the loan to ''poor'' people . That is where usury begins. With an unscrupulous money lender preying on the vulnerable. The bank wont give the ''poor '' man the loan so the shark comes in and the guy takes the money in desperation. He has to have it. So having no recourse he has to pay the ''vig'' --interest-- at whatever rate is set. He has no ability to go to the Police or Courts should this loan shark get heavy with him. Being poor and as there are so many --poor-- in the Philippines only allows this sick trade to flourish.

ACT NO. 2655 - AN ACT FIXING RATES OF INTEREST UPON LOANS AND DECLARING THE EFFECT OF RECEIVING OR TAKING USURIOUS RATES AND FOR OTHER PURPOSES

the guilty person shall, upon conviction, be sentenced to a fine of not less than fifty pesos nor more than five hundred pesos, or to imprisonment for not less than thirty days nor more than one year, or both, in the discretion of the court, and to return the entire sum received as interest from the party aggrieved, and in the case of non-payment, to suffer subsidiary imprisonment at the rate of one day for every two pesos:

http://www.chanrobles.com/acts/actsno2655.html

have you not heard of quick cash,check into cash or title loans in the u.s.,these loans far exceed the legal limits,poor desperate people are exploited everywhere

in case you enter into credit agreements willingly you in uncomplicated terms have your self to blame. the authorities does require all costs and prerequisites (the details) to be made sparkling - few human beings study it.

Yes there is but rarely enforced here.