Collection in the Middle Ages

Debbie Brown maintains and has given us permission to refer to her  "English Historical Fiction Authors" Blog. This particular story by Katherine Ashe was written about Money Lending in the Middle Ages.

Good reading on the subject: 

(I guess they never heard of "doctrine of laches")

An excerpt: 

...The Cahorsine banker did nothing to inform Montfort of his receipt of the debt and application of the 60% interest rate to it, but let it accumulate that monstrous interest for five years, at which point the debt amounted to 2,080 marks. Even then he did nothing to collect but instead, at considerable profit to himself, sold the interest-heavy debt to the Bishop of Soisson – and left him to collect the full amount.

The Bishop wrote to Montfort, informing him of the debt and demanding payment of 2,080 marks. Montfort, under the impression that this interest rate was ludicrous – and that Ranulf had leant him money interest free in the first place (he had already repaid most of what his cousin had leant) – refused to pay anything more than the originally owed 200 marks. At which the Bishop of Soisson excommunicated this debtor. An excommunicated person was cast out of the company of fellow Christians and bound over to hell.

Now that is debt-collection clout. The antidote was to go on crusade, which Montfort did. And that not only lifted excommunications but cleared all debts as well.