When in sudden financial need, people often feel unsure of where to look for help. They may need the amount for a medical purpose, an outstanding bill, or another critical reason. It is common for most folks to turn to loan sharks for a quick, small amount in such scenarios.
However, loan shark harassment is very real and can be an unfortunate consequence for most people who take loans from them. Possibilities include physical and mental threats, constant calls or messages, and other kinds of abusive behavior.
This article will briefly tell you about these types of moneylenders, how to deal with them, and what to do if they harass you.
About Loan Sharks
The most pivotal thing you should remember is that a loan shark is not a licensed financier. Loan sharking is an unregulated and illegal trade where unlicensed moneylenders target low-income groups, offering loans at excessively high-interest rates.
When individuals fail to repay the amount on time, these lenders often resort to extortion, threats, and other modes of violence. In fact, even the term “shark” is used to describe them primarily due to their greedy, aggressive, angry, and ruthless nature.
For these crucial reasons, it is advisable to avoid taking loans from such unlicensed individuals as much as possible.
Why Do People Turn to Them for Loans?
Despite their reputation, illegal money mongers thrive because many people turn to them for loans. However, people come to them only as a last resort in most cases. Here are some typical reasons people take loans from usurers.
- Convenience – Most folks who wish to avoid submitting paperwork at the bank or are aware that their loan application may not be accepted prefer dealing with illegal moneylenders.
- Less chance of rejection – Practically, no one faces rejection from loan sharks because of the excessive interest rates. Therefore, people are sure their needs will be met by an unlicensed lender without having to submit too many documents.
- Quick process – You can get a loan from such lenders in less than a day if required. This rapid functioning is among the top reasons people still borrow from sharks.
What to Do When Harassed by the Lender?
Loan shark harassment is a real possibility when you take loans from unlicensed financiers. But remember that harassment of any kind is illegal and therefore punishable by the authorities.
Therefore, contact the local police after the very first instance of harassment by the lender and ask for protection. If you wait too long to inform the authorities, the harassment may escalate and lead to threats of physical violence and abuse. Moreover, you should file an official complaint with the Registry of Moneylenders as soon as you can.
You can also consider changing your contact information, social media handles, bank details, and other publicly available information for better protection. This will prevent the lenders from contacting you via these sources and harassing you for repayment.
Once the complaints have been filed, you need to stop making payments to the loan sharks, even if they threaten you with legal consequences. That’s because their profession isn’t legal, making their threats void.
Alternatives to Loan Sharks
Even in emergencies, it helps to contact licensed moneylenders for help as they are legitimate professionals. This includes banks, financial institutions, and other licensed lenders who offer short-term payday loans on reasonable interest rates. Furthermore, this is a safe way to take a loan as licensed institutions do not harass customers for repayments.
If you do not wish to approach your bank, you can seek advice from third-party advisors who can offer you thoroughly researched information regarding your loan requirements. They can easily find the best loans for your needs, giving you details of the amount, interest rate, the lender, and other critical data. They will often offer you a couple of loan options, allowing you to decide which is best for you and proceed likewise.