DEUT702 If one knows that the applicant for the loan has bad traits and is careless with other people's money, and someone lending to this person would stand to lose his money, since there will be nothing left from which to collect, it is better not to lend without taking a pledge, then to lend and to be compelled to keep dunning the debtor for repayment, since the creditor will thereby transgress the prohibition [this verse]: "He shall not exact it of his neighbor." So the ruling is recorded in Chosen Mishpat (Chap. 97, Par. 4, q.v. --"Such a borrower is also called a rasha'").