Unlicensed or unauthorized moneylenders are those lenders or traders or people or groups or firms who loan money illegally or outside of the law. They maybe referred to as loan sharks or unlicensed traders or lenders. These lenders are unsanctioned by the government and therefore by law. These people are best avoided for they can cause a lot of problems or harm naive citizens, who are not aware and may borrow money from them.
One should take heed of some of the consequences of borrowing money from these illegal lenders. They are:
• These so called loan sharks charge high interest rates on the loan amount. Therefore it is practical to go to a legal money lender or to a bank where one can find appropriate, legal and low personal loan interest rates. A higher interest rate can make it more difficult for one to repay the amount.
• Another fact to note is that if one gets involved with unauthorized money lenders, that person will not get access to the Financial Ombudsman services or the Financial services Compensation scheme, nor will they be covered by the Payment Protection Insurance or PPI services.
• They mistreat and harass the borrowers until they pay back the funds. This can cause harm not only to the borrower but also to the borrower’s family and friends. If someone is unable to repay the loan, these loan sharks may take the person’s possessions or belongings or destroy them.
• Suing them leads to no avail as these lenders con borrowers constantly and are extremely equipped in escaping the hands of the law. A law suit only results in further loss and waste of time and energy.
• Most importantly, borrowers do not receive any protection by signing any form of contract nor are they provided proper terms and conditions in some cases. Hence, the borrowers do not get any guarantee on such deals or contracts.
• Previously, these loan sharks and money lenders were considered to be involved in illegal or extra-legal activities but in recent times they seem to have even become a part of the criminal underworld and coming into contact with such men can lead to dire consequences.
The above mentioned reasons should provide enough cause for people to avoid illegal money loan givers. The repercussions of getting involved with such illegal lending can be bad. When it comes to borrowing money, one should always go through banks or financial institutions. They offer competitive personal loan interest rates, and authentic legal papers to borrowers. They also expect timely returns in the course of the loan term that has been decided.
One should take heed of some of the consequences of borrowing money from these illegal lenders. They are:
• These so called loan sharks charge high interest rates on the loan amount. Therefore it is practical to go to a legal money lender or to a bank where one can find appropriate, legal and low personal loan interest rates. A higher interest rate can make it more difficult for one to repay the amount.
• Another fact to note is that if one gets involved with unauthorized money lenders, that person will not get access to the Financial Ombudsman services or the Financial services Compensation scheme, nor will they be covered by the Payment Protection Insurance or PPI services.
• They mistreat and harass the borrowers until they pay back the funds. This can cause harm not only to the borrower but also to the borrower’s family and friends. If someone is unable to repay the loan, these loan sharks may take the person’s possessions or belongings or destroy them.
• Suing them leads to no avail as these lenders con borrowers constantly and are extremely equipped in escaping the hands of the law. A law suit only results in further loss and waste of time and energy.
• Most importantly, borrowers do not receive any protection by signing any form of contract nor are they provided proper terms and conditions in some cases. Hence, the borrowers do not get any guarantee on such deals or contracts.
• Previously, these loan sharks and money lenders were considered to be involved in illegal or extra-legal activities but in recent times they seem to have even become a part of the criminal underworld and coming into contact with such men can lead to dire consequences.
The above mentioned reasons should provide enough cause for people to avoid illegal money loan givers. The repercussions of getting involved with such illegal lending can be bad. When it comes to borrowing money, one should always go through banks or financial institutions. They offer competitive personal loan interest rates, and authentic legal papers to borrowers. They also expect timely returns in the course of the loan term that has been decided.
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