11:01 19 September 2013
Loan sharks are moneylenders who lure desperate individuals into borrowing money at extremely high interest rates. Borrowing money from them should be a big no even for just a short-term loan.
The dark side of loan sharks
The loan sharks try to be friendly to lure borrowers to fall into a trap. They usually:
Check legitimacy of the lender
The Office of Fair Trading’s Consumer Credit Register has a list of licensed lenders, lenders with revoked licences, new applicants and lenders with suspended licences. Use the list to know if you should borrow from a particular lender or not.
Loan sharks are not above the law
Loan sharks do not have a right to recover any debt they claim because the loan is illegal in the first place. In fact, loan sharking is punishable as a criminal offence. Harassment, intimidation, threats and violence are signs of loan sharking.
Give information about a loan shark
You may give information about a suspected loan shark at the Gov.uk website.
Other loan options aside loan sharks
When you are in need of money but have low income, poor credit rating; there are still many available legit lenders. You just need to really look and ask around.
Aside from the government, there are so many other organisations, which can offer help.
In short, do not turn to a loan shark just because you cannot loan some money elsewhere. They may seem to be pleasant and affable at the outset but borrowing from loan sharks is not desirable anyway.