If you have had trouble in the past dealing with loan sharks. Being pressured by fraudulent lenders can be stressful. This is especially on a financial level. This article will look at some guides on the basics of handling loan sharks.
In Singapore, loan sharks are unlicensed moneylenders. These lenders usually illegally offer personal loans. They mostly provide loan money using unfair terms. This includes things like exorbitant interests.
Since loan sharks are not bound by law. They often tend to be unscrupulous. Loan sharks even use violent harassment methods. This is a way to make you pay back your debt.
Ways of Spotting a Loan Shark
Usually, loan sharks start out by being friendly. When you continue to promptly make repayments. They could stay this way. However, the reality remains. Even when you do, all the loans you take often come at high a price. To help you spot a loan shark, you will notice:
- Your debt has increased or they might add extra charges without notice.
- These lenders provide almost no paperwork. This is documents like loan agreement and also a record of payments.
- They get nasty towards you. These lenders might turn to threats, intimidation, or even violence.
- Loan sharks refuse to offer you important information. This information like interest rates and the amount you currently owe.
- They might even refuse to let you settle your debt
- They could take items as collateral. Things like bank cards, passports, or even a driving license
Dealing With Loan Sharks
Below listed are ways for you to deal with loan sharks.s
Report your Situation to Proper Authorities
The dealings of loan sharks are prohibited by law. Therefore, the next logical move is to report them to relevant authorities. Be sure to give details of who this loan shark is.
Explain also how this lender operates. When you have records of previous transactions made with this loan shark. It will greatly help in the investigations. Ensure that all the details you know, you let the authorities know also.
Avoid Dealing With This Lender
When it happens that you have not to date made deals with loan sharks. It is recommended that you keep it that way. It is not easy trusting loan sharks.
Regardless of how need and desperate you are. Keep in mind to never get personal loans from the loan sharks. The one rule when dealing with loan sharks is. Stay away at all costs from the loan sharks. Besides, it is better to be safe than sorry.
Keep Your Cool
The first step you need to take is to stay calm. Do not panic. It is not a good idea to let a loan shark see this. Even when you already are aware that they are attempting to victimize you. You could be risking yourself and get into more problems than you are in.
Confirm the Lender’s Credibility
Often, borrowers fail to confirm whether their moneylender is accredited. This is simply because their operations appear legitimate. Consider this carefully because most loan sharks appear as legitimate money lenders. But this is only for appearances. However, upon further inspection. It will be revealed that they are fraudulent lenders.
The first thing to do is identify whether they are certified. A legal and reliable lender holds a government-issued license. The license allows them to operate a lending business. When the moneylender has no license, consider it your red flag. Therefore, do not transact with them.
But, if you already have borrowed money. Then you realize this rather late that this moneylender is an illegal lender. You are still able to get out of this situation unhurt. When you already have fallen victim to the illegal money lenders. Do not give up yet. There is still some hope for you.
Stop Payments and Do Not Yield to their Threats
As soon as you have reported your situation to the right authorities. You may now safely stop making payments on your debt. Since loan sharks operate unlawfully. It means that they legally not allowed to lend money. Neither should they be receiving repayments from debtors. Get informed regarding your rights and the law. Then you can use it against these lenders.
Report Any Pressure And Further Threats
Loan sharks could resort to making threats and pressuring you. Even then do not yield to these threats. You should also immediately report them to authorities. This will help your case since any more threats can serve as evidence.
Consult a Financial Adviser
It is a good practice to consult a certified financial adviser. This will be useful for you in future. In doing this, you do not face the risk of dealing with loan sharks. Additionally, you get to learn much better methods of getting loans.
Who Loan Sharks’ Often Target
The rise in living expenses in Singapore has contributed to need for loans. The ongoing need for low-interest personal loans is on the increase. The possibility that you might get caught in loan shark traps is on the increase. It just happens that loan sharks will always look for ways to contact borrowers.
These lenders target those individuals with low income. These individuals also struggle to get a personal loan from legal sources. These lenders aim at reaching borrowers who desperately need loans. Loan sharks offer fake support for their borrowers on the initial meeting.
Though people use personal loans to enhance their financial situation. They are not aware of what a loan shark is capable of. Typically, loan sharks appear to be friendly at the initial meeting. However, their behaviour quickly changes into intimidation and threats. It at times can escalate to violence.
How To Confirm If a Lender Is Legal
The Moneylenders Registry keeps an up-to-date full list of all licensed moneylenders. They usually have the list posted on their official website. When a moneylender does not appear on the list. Do not borrow from them. Also, you should not let them visit your home. Always take the time to check a lenders license. Be sure to confirm that it is valid.