Concerns in Debt Collection
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Question
There is a prohibition in the Torah of "do not be to him as a creditor." Does this prohibition also apply to charitable loans, and what does the prohibition include?
Answer
This prohibition also applies to charitable loans, and it is relevant only when the borrower has no assets. However, if he has a house or a car, there is no prohibition. Additionally, if he has no assets, there is no prohibition if it is known that the borrower borrowed with the intention of rolling over debts and he can go to a charity and borrow money.
Source
Shulchan Aruch, Choshen Mishpat, Siman 97, Azmera Leshimcha (Issue 97)
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