Loan Sharks

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Loan Sharks
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• If youre having money troubles or are worried
  about the state of your finances then youve
  probably looked into getting a loan. If you have
  then you may have come across the term loan
  shark. But what exactly is a loan shark and what
  do they do? Read on to find more information
  about them and why they are a bad idea if youre
  worried about money. 

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• Loan sharks are illegal lenders who lend money
  to people who are in need. They tend to target
  low income and desperate people because they know
  that these are the people who are more likely to
  go for their services. Loan sharks often seem
  friendly and inviting and probably seem like a
  great idea at first but borrowing money this way
  rarely turns out well. 

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• But why are they so bad? Loan sharks often come
  with a lot of high risks when you borrow from
  them, and these risks can end up costing you a
  lot. Because loan sharks are illegal they dont
  have to operate according to any rules or
  regulations and this can leave you without any
  protection. Borrowing from a loan shark often
  means that you end up paying far more interest
  than you would be going with a legal and
  legitimate lending company.

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• For example, one person only borrowed 500 from
  a loan shark but ended up paying a whopping
  88,000 back in total. For those who are already
  worried about money, this is not going to help
  the situation. You may also be pressured or
  coerced into borrowing more money in order to
  help pay off your current loan. This has led to
  many people being left with a mountain of debt
  that they cant pay off, and are constantly
  having to borrow to keep up repayments. 

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• Another common risk associated with loan sharks
  is that you may end up being harassed or
  threatened if you dont make payments on time.
  Because loan sharks operate outside of the law
  they can decide to change repayment dates, or
  change the amount that you should be paying each
  month without having to inform you. This puts
  you in a very difficult position as you have no
  legal backing to protect you if they do decide
  this.

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• By going to a loan shark you have also
  participated in something which is illegal and
  loan sharks often rely on the fact that you wont
  go to the police if they start harassing you.
  Unfortunately, there are all too many cases of
  people being attacked because of the money that
  they owed. 

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• If youre worried about coming across a loan
  shark while looking for a loan then there are
  some things that you can do to help you recognise
  one. A loan shark will often offer little to no
  paperwork and wont do proper credit checks
  beforehand. A legitimate lender will do thorough
  background checks in order to make sure that you
  are able to pay back your loan without a massive
  negative impact on your life.

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• Loan sharks are also likely to withhold
  information from you such as the amount of
  interest youll pay. They tend to be vague like
  this because this means they can change the
  interest rate if they want, and they know you
  will be more likely to refuse if you knew the
  truth. 

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• Other techniques that loan sharks use those
  legitimate lenders dont are things like taking
  forms of ID such as driving licences, passports
  or bank cards. A reputable lender will never,
  ever ask you to hand over these items. At most
  theyll ask for photocopies, but never the actual
  thing. This is one of the most obvious ways to
  tell if a lender is a real deal.

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• There is a government organisation that keeps
  track of all authorised lenders in the country.
  This is called the Financial Conduct Authority
  and they have a list of all the people who are
  allowed to lend money legitimately.. 

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• You can find this list online so you are able to
  check beforehand if the lender you have been
  dealing with are legal or not. It is never a good
  idea to go for a loan shark, no matter how much
  trouble you are in. There are always other
  options and a loan shark shouldnt be one of them

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To know more information, visit us
https//www.redbridgefinance.co.uk/