Borrowing Money from Loan Sharks or Illegal Moneylenders
With today’s deteriorated economy, it is hard to meet the ever-escalating cost of living. Banks and legal financial institutions are coming up with stringent rules of borrowing. And they are continuously rejecting many applicants. This has forced people with the urge for finances to turn to other non-authentic financial institutions.
Who Are The Illegal Moneylenders?
You can also call them ‘loan sharks’. They are illegitimate moneylenders because no authoritative body regulates or governs them. They conduct their activities outside the law. Many people have no choice but to seek fortune from illegal moneylenders. They have no idea that they risk returning the money with extremely high interest rates. Illegal moneylenders tend to enact harsh rules that trap clients and put them into a difficult-to-escape debt cycle.
What Will Be The Case If You Cannot Repay An Illegal Moneylender?
What happens when you cannot repay money taken from loan sharks? Well, they cannot report you to any authority because they too are doing an illegal business. Repaying is not as easy as borrowing. How exactly do they facilitate people to repay their loans? Okay, do not imagine you can take their money, and then fail to repay thinking that everything will be all right.
Illegal moneylenders will threaten you to keep you on toes. They will not stop reminding you about the loan. Some of them will even threaten to take your life, in the event you cannot return their money on time. Most of them do not just give empty threats! To avoid such incidents, you should take safe loans from legitimate and licensed moneylenders.
Illegal moneylenders are not open to their clients. They force customers to give all their information and personal details, at the same time, concealing their details. This makes it easy for them to have full control of their clients, and to avoid police detection.
Is It A Crime To Borrow From Illegal Moneylenders aka loansharks?
If you have fallen into their trap, do note that when you are making payment to them, police will deem you as loanshark runners. Why? This is because when you are transferring your payment to them, you are not actually transferring to their account. In fact, you are transferring the money into another victim’s account. If for any reason the next victim is unable to make payment and gets harassed by these illegal moneylenders, they may make a police report. Once the police trace backs to where the money is coming from, you will be seen as a runner even though you are not.
We are a licensed money lender company operating in Singapore. If you need a loan, submit a loan application to check if you’re eligible! However if you are still uncertain, contact us and we will clear up all your questions 🙂