Don’t Let Loan Sharks Rip You Off!
If you’re still want to find a loan shark, then you’ll soon discover that shark loans are not all they cracked up to be. It’s well known that doorstep lenders use a range of tactics (especially during Christmas time) to take advantage of the people and low income families who need even more money than usual at this time of the year.
The home credit industry is the legal version of the shady and illegal loan sharking industry. These type of unscrupulous lenders are busy getting business from hard-up families who are really struggling to pay their every day costs of living.
Those sucked into this type of borrowing are often unaware of the hidden charges that some would say are even extortionate. Many of these rogue lenders charge up-front fees to pay for missed payments, and rarely offer any detailed of a loan agreement to you, so you have no record of the loan or repayments or charges.
These loan shark individuals or firms will use the fact that borrowers will default on their repayments in order to justify the high charges for their door step loans. So, whilst customers are charged for this type of flexibility, they are simply not told how much this will be and don’t get any rebate even if they happen to repay the loan in full and on time. They claim that clients enjoy a price which is all-inclusive in nature, but what customer’s don’t know is there is an ongoing cost even if they keep up with their repayments. This lack of transparency while being highly illegal is also what makes it even more important that potential customers check out any individual or organisation that they decide to borrow from.
The problem is that many sub prime lenders will only offer you a loan so long as you have some income. They may be more expensive than prime lenders (such as banks and building societies), but they expect you to have some form of income. Loan sharks are effectively sub prime lenders who will not perform credit checks, so it does not matter whether or not you have a bad credit history. Even people with an extremely poor credit history are accepted.
While the UK government has tried to protect those on lower incomes from illegal loan sharks, there is a debate on how effective this actually is. Any new legislation that may be bought in to curb those lenders who charge what some may see as excessive rates of interest to some of society’s poorest people, but this only targets legal and fully licensed lenders. Most of the government and local authority campaigns are based on loan shark victims actually reporting any illegal lending activity.
So, what are the alternatives? The government has mentioned that Credit Unions are the way forward for those who have been excluded by the mainstream lenders. Whilst they may work in some cases, there are many who do not want to use these antiquated forms of borrowing.
If you have some kind of income, whether it’s full or part time employment, or even state benefits, you should still be able to obtain a loan. If you think you will have to resort to finding loan sharks then please try here first.