Loan sharks are not a thing of the past, because they are present even now, in the age when online payday lenders exist. Main reason for taking a loan from a loan shark is due to lower interest rates ( they are still quite high ) they provide, and the fact that many online payday loans are made on the ground of frauds and their main goal is to get access to your credit card.
Loan Sharks at UK
In UK a research showed that around 175 000 people have debts to loan sharks. UK government has very strong law against this kind of business and you would think that they keep it in check, but reality is quite different. Even though payday lending of this level has strong connections to organized crime and it has a noticeable rate of serious violence involved people are still taking these kinds of loans. In some cases payday loans have legal background, but the number of such businesses is quite low compared to those illegal businesses. Main difference between these two is in law that binds creditor to follow the law and refrain from abusive and aggressive action in debt collection.
Loan Sharks at Ireland
It isn’t any better in Ireland, and some even think that it is worse due to numbers that surfaced. Between 100 000 and 350 000 loans given in Ireland broke the law. Government of this country is criticized due to their low efforts in protection of families with low income.
Loan Sharks at USA
USA has laws that allow payday lending, and those services are used by people who are unable to get a bank loan due to their financial position. These loans are on the edge between legal and illegal and their interest rates are very high. Many people call these businesses money sharks, due to their similarities with loan sharks of the past century. Only difference between then and now is the law that gives those loan sharks some rights. People are protected by that same law but that law binds them in repaying those loans, no matter how high the interest rate is. Some evidence showed that payday loans of today ( given by legit businesses ) have higher interest rates than payday loans that are given by organized crime syndicates.
Loan Sharks at Japan
Japan has strict interest rate laws in which maximum interest rate is 20 percent. But due to the situation in that country and low number of loans given by banks, payday lending has strong presence, and interest rate of those loans is between 30 and 50 percent.
Loan Sharks at Malaysia and Singapore
Malaysia and Singapore are plagued by Ah Long, which is their name for loan sharks. They are willing to do a lot in order to get their loans repaid. Beating customers, setting their property on fire, spraying pain which contains threats or signs that mark owners of those properties as debtors and so on. Those are just few examples that these loan sharks do, and most of them are effective in sending clear message to the indebted people.