What is a loan shark?
Loan shark is a lender who charges extremely high rates of interest to borrowers who cannot qualify for standard loans from banks or credit unions.
Some licensed payday lenders who lend money at high rates of interest are often considered to be loan sharks, especially by payday loan critics, who believe that payday lenders or loan sharks as they would like to call them charge too high interest rates and resort to violent collection practices.
Today’s payday loans are a close cousin of the shark loans, which were popular in the 20th century. It is often the case that lending rates on payday loans may equal or even exceed the rates charged by the organized crime syndicate operating a century ago.
Need A Loan Now?
If you decide to get a loan now from a payday lender you must check the total charge that the lender will apply to the loan. Since the payday lenders are regulated, check with local authorities if the charge is legal in your state.