(3:75) And among the People of the Book there are some who would restore you even if you were to entrust a treasure of gold, and of them there are some whom were you to entrust with one gold piece, will not restore it unless you stand over them. That is because they say: 'We will not be taken to task for whatever we may do to non-Jews (ummls). *64 Thus they falsely fix a lie upon Allah, and do so wittingly.

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*64). This was not merely the misconception of the ignorant mass of Jews. Their religious teaching was the same and the legal doctrines of their accepted religious authorities and jurists reflected this idea. With regard to injunctions on loans and interest the Bible makes a clear distinction between an Israelite and a non-Israelite (Deuteronomy 15: 1-3; 23: 20).
It is stated in the Talmud that if the bullock of an Israelite injures the bullock of a non-Israelite the former is not liable to any penalty, but not vice versa. Similarly, it is laid down that if anyone finds an unclaimed article he should enquire amongst the people who live nearby. If they are Israelites he should announce his find; if not he may keep it without saying anything further.
Rabbi Samuel Ishmael says that if a dispute between a Jew and a Gentile is brought before a judge, he should base his verdict on Jewish law if it is favourable; if the law of the Gentiles goes in favour of the Jew he should justify his judgement by saying that the Gentile has no valid ground for complaint since judgement was given according to his own law. Even if both laws are unfavourable towards the Jew the judge should still find some pretext for deciding in his favour. Rabbi Samuel says that benefit should be derived from every mistake the non-Israelite may make. (See Paul Isaac Hershon, Talmudic Miscellany, London, 1880, pp. 37 and 210-21.)