Loan Sharks

[robshaw]

In times of desperation, it can be tempting to turn to the ready cash offered by loan sharks. However, it is virtually impossible to have a trouble free transaction with a loan shark. They will charge you extortinate rates of interest and even if you repay the money in full on time, they may still hound you for cash. It is a very dangerous path to go down and could have violent repercussions for you and your family. If you owe money to a loan shark, you can and should seek help from relevant authorities. Share your experiences and knowledge about this subject here.

[Caitlin]

I got myself into some hot water by borrowing from a loan shark. I was threatened with violence and at times considered ending it all. It wasn't until I cnfided in a friend who advised me to get help that I realised it is possible to escape from this situation. There is some really good advice out there and remember, if you have borrowed from a loan shark, you are under no obligation to pay back the cash. They are operating illegally, however, you have not broken the law by borrowing money. The authorities will always be on your side when you seek help. The police will protect you if violence is involved, please, do not be afraid to seek help. 

[robshaw]

If you have become involved with a loan shark, contact your local Trading Standards office. They will help you work out how to deal with the situation and will chase up the illegal lender. Use the Consumer Credit Public Register to find out if a lender is licensed and operating legally.

[robshaw]

For anyone who needs any clarification of the danger of borrowing from loan sharks, the Guardian printed a story today which revealed one woman paid £88,000 to a loan shark over 7 years after borrowing just £500. She had wanted the money for a christmas present for her daughter and the man posed as her friend and promised her she would pay 'just a little' interest. For the full story read:

http://www.guardian.co.uk/uk/2009/aug/05/government-warning-as-loan-sharks-jailed

[Robert]

This sad story really emphasizes the reasons to avoid loan sharks. It is so tempting when you have not got much money to borrow from these people, but it can only end in tears.