Everything You Need To Know About Loan Sharks
Sharks are feared creatures of the sea because of their razor-sharp teeth and predatory way of feeding. This is the main reason why they are also associated with individuals or groups of people who plague distraught debtors with seemingly outrageous and unjust interest rates. Because their interest rates are horrific, they are referred to as loan sharks.
How to Spot a Loan Shark
Loan sharks thrive in almost every country. In Singapore alone, it is estimated that there are more than a thousands of them waiting to seize an opportunity. Meanwhile, according to the Ministry of Law, around 160 accredited lending companies such as Quick Credit PTE LTD are listed.
Loan Sharks mostly offer faster and easier loan services, generally dodging legal formalities with the main purpose of gaining more repayment than usual. These persons or groups may present themselves as reputable businessmen or organization to lure victims to borrow money from them.
Loan sharks are not your ordinary money-makers; they earn millions running fraud lending rackets. Here are some tips on how to spot a loan shark.
- They are doing business without a contract or if there is one, the terms are usually not upright and legitimate.
- They offer you large amount of money despite having a modest income.
- They operate without a business address.
- They implement excessive interest raes and unjustifiable charges.
- The company does not have a license number issued by the Ministry of Law.
Why People Choose Loan Sharks
Loan sharks usually present themselves as reputable money lenders with the willingness to lend a hand in a more convenient way without the hassle of a lengthy application process. Mostly, those who are financially devastated and desperate enough fall into their trap without even realizing it until they are trapped.
In a more resourceful way, they would obtain information or leads from reputable lending institutions and lure the victims to entanglement. Oftentimes, however, some would choose them because they cannot get loans from the banks or other financial institutions because of bad credit. Some would borrow from them because their reason to do so is suspiciously illegal like for gambling purposes. Others would need to have lots of money without any justifiable reason.
What Happens Next
Now what happens is when the victim cannot pay the initial amount, he/she is forced to borrow more money to be able to pay the previous debt. This in turn results to a larger principal amount plus a higher interest rate.
The borrower would most likely be handing over all their hard-earned money to loan sharks willingly. When the borrower have exhausted all their effort and can no longer repay the amount along with the exceeding interest and extra charges, the loan sharks try to instill power and fear.
What they mostly do is make their victims experience some nerve-wracking situations such as harassment, threats, blackmails, public embarrassments and many more as a consequence. Violently, these predators even resort to more fearsome ways like forced confiscation of valuables, vandalism and serious crimes like assault, arson, etc.
What You Need to Do
Since loan sharks are almost everywhere, it is best to avoid these kinds of moneylenders to save yourself or your family the horrifying nightmare that comes with being entrapped. If you get into financial difficulties, beware of having to recourse into any semblance of these lenders. Keep in mind that they are good at disguising their true intentions. They may even start at simple payday loans.
If, by any ill-fated chance, you fell into the trap set by these loan sharks, you cannot cut off your ties without paying the consequences. It’s like living in a nightmare you cannot escape. That being said, there are existing laws that can be to your advantage. In addition, there are also many organizations that are more than willing to help you out, so seek legal advice as soon as you can.
To elaborate further, if you happen to check Facebook or other social media, you can find support pages like the Singapore Anti Loan Sharks. It is a community with undisclosed identity dedicated to provide legal assistance to victims of opportunistic moneylenders. They will be able to guide when it comes for legal actions.
Finally, as it is firmly emphasized, preventative measures are better observed in order to preempt being a victim of fraudulent schemes. Information dissemination and cautious countermeasures are a must in order to protect one’s self or loved ones.