Emergencies can happen to anyone and often end up just when we are out of money to solve them. At such times, many people become desperate and end up resorting to some risky alternatives to get out of the stifle, such as loan shark loan.
It may seem like a good deal right away, but watch out. Good Finance has separated five of the main reasons for moving away from this alternative. Check it out and understand it better.
After all, what is loan shark?
A loan shark is a person who offers a loan without having a legalized company, such as a bank or correspondent bank , for example. That is, he does not follow the rules and is committing a crime . Precisely because they are not lawful, they usually make offers that seem tempting, such as quick cash in hand without the need for proof of income, documents or signing a contract.
Loan sharks are often targeted by people who are really in difficult situations, such as debt , and need an amount urgently . Because they are delinquent , these people often have no way of resorting to a traditional bank, as most do not lend to those with a dirty name. Although it may seem like an alternative, be aware that it can be costly and extremely dangerous.
The Risks of Borrowing from Loan Sharks
Now that you understand how it works , it is important to know that this practice is very risky and can cause you an even bigger headache. Know the risks and move away from this type of offer:
- It’s a crime
As we said, this practice is illegal . Taking advantage of some people’s plight, loan sharks use the loan to get illicitly rich because they charge higher interest rates than allowed by law. The activity is a crime against the popular economy, with a penalty of six months to two years in prison. In addition, it also goes against the National Financial System, as it does the operation without Central Bank authorization. This offense is punishable by 2 to 8 years in prison and a fine.
- The interest rates are very high
Moneylenders charge 40% interest per month to lend the money. Since the value is so high, it is difficult for someone to get out of debt and, thus, they end up pushing to make other renegotiations that will be disadvantageous to you, as well as very risky.
- Because they are not within the law, they do not follow rules
If you feel injured, you will have no one to turn to, as the activity is not legalized, has no contracts or regulations. That is, without Procon or Central Bank to help in emergencies. You run the risk of even getting a late payment, paying your backlog, and the loan shark not returning it again.
Loan sharks may not even ask for proof of paper income, but they will certainly ask for a security as well. And usually the value is much higher than the loan you took, such as a vehicle or property , for example. Since interest rates are high, if you end up squeezing to pay, you can lose forever what it took years to achieve. In addition, some still keep their cards and even documents until the debt is paid off.
Another major risk that borrowers for a loan shark runs is, in the event of late payment, threatening, stalking and even aggression. They use fear to try to extort who is owed. And again, because it is not a lawful activity, some people are afraid to seek help from the police.
Now that you know the risks of borrowing from a loan shark, you might be wondering what to do if you need urgent cash, right? For know that the answer is easy: Good Finance. For four years in Brazil and with over 2 million registered customers, here you can get personal credit quickly, 100% online and, most importantly, reliable!
Good Finance operates within all regulatory standards. Here, every order is placed through the site – we do not lend by message, email or phone – in a secure environment protected by advanced technologies.
We serve * salaried, self-employed, retired, civil servants, pensioners and even negatives. The values range from $ 500 to $ 3,500, with payment up to 12 times. The interest is always very clear and you know the value of the installments before you even register.
What are you waiting for to solve that situation that is taking your sleep? Escape from mind-boggling solutions that will only bring you a headache. Opt for a serious company that will offer the best alternative to your pocket.