![]() ![]() ![]() A key difference between "traditional" loan sharking and predatory lending is that lenders alleged to be engaged in the latter practice are expected to stay within the law when making and collecting loans, and thus the debate into such practices often focuses on whether they are ethical as opposed to whether they are legal. Loan sharking is not to be confused with predatory lending with extremely high interest rates such as payday or title loans, which is sometimes considered to be "loan sharking" (or, at least, unfavorably compared to loan sharking by critics) regardless of whether it is legal. In the recent western world, loan sharks have been a prominent feature of the criminal underworld. Historically, many moneylenders skirted between legal and criminal activity. Description īecause loan sharks operate mostly illegally, they cannot reasonably expect to be able to use the legal system to collect such debts, thus they often resort to enforcing repayment by terms of blackmail and threats of violence. ( Learn how and when to remove this template message)Ī loan shark is a person who offers loans at extremely high interest rates, has strict terms of collection upon failure, and generally operates outside the law. ![]() This article may need to be rewritten to comply with Wikipedia's quality standards.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |