How to deal with loan sharks

Unlicensed lenders AKA loan sharks mostly prey on families of low income or those who find themselves in difficult times and in dire need of a quick fix. Urgent 2k.

Here are a few ways to recognize them. As they operate outside the law, you’ll likely:

Be offered a cash loan: Most loan sharks tend to operate with cash, but do take note that some may operate online as well.

Notice a lack of paperwork: Loan sharks won’t give you a formal agreement which makes it easy for them to change loan terms in their favor at the drop of a hat.

Get poor/vague loan terms: Loan sharks tend to be unclear about the amount of interest they charge and repayment terms. Sometimes, they might straight up give you outrageous terms to work with. (But since you’re in urgent need… you feel as though you have no other option).

Get a loan without the necessary checks: Loan sharks won’t conduct any checks or assessments before giving out a loan. (It’s giving sketchy abi?).

Face harassment and threats if you are behind on repayment: Unauthorized lenders are not afraid to resort to threats of violence and harassment if you are behind on your loan repayment.

Be pressured into borrowing more: The moment a loan shark gets you to borrow from them, they’ll charge you such high-interest rates that you’ll never be able to repay in full. They may even convince you to borrow more from them in the illusion of paying off your previous debt with the new one.

The purpose of this article is not just to help you recognize these loan sharks but to give you a way to sort out any issues that you as a borrower may face when confronted with a loan shark you borrowed from.

When you are being harassed and threatened by a loan shark, a formal report can be made to the authorities with proof that your life is being threatened. And that can be acted on.

It’s very important to note that just because a loan shark can’t take legal action against you for not repaying your loan because they’re unlicensed, doesn’t mean that they won’t take drastic measures illegally. Remember, these individuals operate outside of the law. It would do you good to not purposefully antagonize a loan shark.

PS: Licensed lenders have the right to take legal action against you if you default on loan repayment, as it’s still a civil offense.

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At Irorun, we understand that it can be tough to find an ethical lender that respects your rights as a borrower, that’s why we constantly bring you actionable tips on how to get the best borrowing experience.

Feel free to send us a message at support@irorun.com to get started with your loan!