Loan shark

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Loan shark

Someone who issues loans with interest rates above the maximum legal level, often thought to come with threats from the lessor. Loan sharks typically are associated with organized crime, but this is becoming more rare with the emergence of regulated methods that accompany high-risk loans such as subprime and payday lender. See: Usury

Loan Shark

A person who makes illegal loans, usually by charging an extraordinarily high interest rate. For example, a loan shark may lend $1,000 at a 2,000% annualized interest rate, which is illegal in most states. Loan sharks are not financial institutions; they often "collateralize" their loans with threats of violence. Loan sharking often is associated with organized crime. See also: Usury.
References in periodicals archive ?
If anyone is a victim of a loan shark, or knows of someone who is, we would urge you to speak to us in confidence, as we can help.
For financial advice or to report a loan shark, call the EIMLT on 0300 555 2222.
It is very important that our young people learn about managing their finances - the better educated they are in this area the less they are likely to become victims of loan sharks later in life.
The warning about the shocking tactics was issued by the Illegal Money Lending Team in England, which co-ordinates probes into loan sharks.
However, no matter how difficult things become, our message is that no one should even consider the temptation of using loan sharks.
People are left penniless and in fear of the loan sharks.
A common strategy used by loan sharks is to confiscate the passport of the borrower.
Loan sharks employ criminal methods to lend money, and criminal activities to get recovery of it also.
Remember, loan shark debts are not enforceable and by taking action against loan sharks we can, in the long term, reduce rent arrears, evictions and homelessness.
WIMLU is responsible for investigating and prosecuting loan sharks, as well as supporting victims when their debts become too much.
He says: "As credit dries up, we can make the assumption that more people will be tempted to use loan sharks.
And they found how some loan sharks can charge interest rates of up to 130,000 per cent.