Loan Sharking


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Loan Sharking

The practice of making illegal loans, usually by charging an extraordinarily high interest rate. For example, a loan shark may lend $1000 at a 2000% annualized interest rate, which is against the law in most states. Loan sharks are not financial institutions; indeed they often "collateralize" their loans with threats of violence. Loan sharking often is associated with organized crime. See also: Usury.