More and more people are turning to loan sharks as other types of loans get more difficult to find.
In the UK, loan sharking complaints have increased tenfold. Other countries, including the USA, also have more loan sharking activity.
Loan sharks are generally informal lenders of last resort. They charge extremely high interest rates, and they make their own rules. Sometimes they use intimidation and other techniques to bully customers into paying.
Loan sharks can also change their loan terms, often without notice. They may demand that you pay differently than you expected, and they can jack your interest rate up on a whim.
If you really need a loan and can't get one from a bank or credit union, a loan shark probably won't make your life any better. Instead, try working with family, friends, and peer to peer lending networks. They'll use formal agreements and probably get you a better deal.
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