Dont fall into the loan shark trap
In light of this week’s news regarding the incarceration of a notorious loan shark, we have decided to provide a little bit of information on the subject and to advise our readers “why you should avoid them at all costs”.
What is a loan shark?
By definition, a loan shark is an individual or unregulated body that provides illegal unsecured loans to people in desperate situations, at extortionate rates of interest. Their operations rely on scare tactics, blackmail and all to common violence.
Who do they target?
Loan sharks target people who are unable to attain credit from the usual channels such as banks and other high street lenders. People in serious financial difficulty seek finance from loan sharks as a last alternative, only to make matters worse. Loan sharks operate illegally and as such do not conform to industry regulations and standards, which are devised to protect the consumer.
Legitimate, regulated lending bodies use analytical data to determine if a consumer is financially fit as a potential borrower. These practices are in place to safe guard the lender and more importantly to protect the consumer from further financial difficulties.
A loan shark cares little about your “financial fitness” and will ensure payments are met using any means necessary. In extreme cases putting loved ones and members of your family at risk also.
The alternative?
It is important to remember that many people suffer from the burden of serious debt, and there are a number of organisations more than willing to help. A good starting point would be your local Citizens Advice Bureau, their advice is free and given with your best interests at heart.
Under no circumstance should you ever consider a loan shark as a solution. Their business is fuelled by the desperation and misery of others and employing their services will put you in a far worse situation.
