How to Deal With Loan Sharks

How to Deal With Loan Sharks

Have you ever had trouble dealing with those greedy, opportunistic loan sharks? Nothing could be more financially troubling than being pressured by felonious lenders.

Here are some guides in knowing the basics of dealing with loan sharks.


 

01Prevention is Better the Cure

If you have not yet made any deals with loan sharks, you are better off that way. Loan sharks can never be trusted. No matter how desperate and needy you are, do not EVER get loans from loan sharks. The first rule in dealing with loan sharks is that you stay away from loan sharks. Prevention is better than cure.


02Authenticate the Lender’s Legitimacy

Often, people fail to know whether their lender is authorized or not just because the operations seem legitimate. Let this be a warning that most loan sharks seem like legitimate lenders on the surface, but upon extensive inspection, are actually revealed to be fraudulent. Your first step is to identify whether the lender has a certified government issued lending license. If the lender does not have a license, then that is your red flag in proceeding with any other transactions.

However, if you have already borrowed money and found out too late that the lender is a loan shark, you can still get out of the situation unscathed. If you have already fallen victim to these illegal lenders, there is still a glimmer of hope for you.


03Keep Your Cool

Your first step is to keep your cool. Do not panic. Do not let the loan shark know that you have already found out that they are trying to victimize you. You might risk yourself getting into more trouble than you are already in.


04Report the Situation to Proper Authorities

The operations of loan sharks are against the law. Your next logical step is to report to the authorities who the loan shark is, and how he or she operates. If you have kept track of the previous transactions you have made with the loan shark, it could help the investigation. Make sure that everything you know, the authorities would know also.


05Stop Paying and Do Not Give in to the Threats

Once you have already reported the situation to the authorities, you can now safely refrain from paying back your debt. Loan sharks are operating unlawfully, which means that they do not have the right to lend money or receive payments from debtors. Have knowledge of the law and your own rights, and use it against them.


06Report Further Threats and Pressures

The loan sharks may resort to threats and pressures. Do not give in to those threats, and report them immediately to the authorities. It will help the case because any further threats from them can be used as evidence against them.


07Consult Financial Advisers

For future lending transactions, it is wise to consult licensed financial advisers first. This way, you will not have the risk of getting in business with loan sharks, and you will know much better ways of lending money.

Remember, borrowing money is not bad, as long as you know who to borrow from and how to handle the borrowed money.

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