What Are Loan Sharks ?
A loan shark is a person or an institution that gives loans at higher interest rates than the normal legal rate to people with a bad credit report. There is no legal limit to how much a loan shark can charge. Some loan sharks charge more than 60 percent interest rate annually. Some can even charge 100 percent interest rate. For example, if you take a $10,000 loan from them, then you would be repaying $20,000 within a 30 day period. |
Sponsored Links :
|
They are the worst kind of lenders. Their collection policies are violent and harassing. They may not hurt you physically, but are very capable of damaging your reputation, jeopardizing your job and family. They do everything indirectly, and are very experienced with it.
The only way to get rid of them is paying them off completely. They do not understand bankruptcy or any such protective covers. Loan sharks are mostly unlicensed lenders and their whole business is illegal.
These kinds of lenders are only looking for people who are desperate for money, and have a bad credit report. They know that these people have no choice but to come to them. Loan sharks also consider giving loans to people who are between jobs. The desperation for them is to keep the money in rotation. Their late fees can be unreasonable, and they can charge nearly 1 percent per day as late fee. Nonetheless, current statistics show that more than one million people go to loan sharks every year because they are unable to find loans elsewhere.
More Articles :
|
