In the Philippines and many other countries, loan sharks cannot legally take you to court. Here’s a detailed breakdown of why:
Top 10 Fast Online Loans in Philippines – A Valid ID is All You Need Updated in December 2024
| Rank | Lender Name & Application Link | Loan Amount | Loan Term | Interest Rate | Repayment | ID Required | Age Range | Special Feature |
|---|---|---|---|---|---|---|---|---|
| #1 |
SOSCREDIT |
₱1,000 – ₱25,000 | 3 – 12 months | 0% for first loan | Monthly or End of term | Only ID Card required | 20 – 70 | Receive money in 15 mins |
| #2 |
CREDIFY |
₱1,000 – ₱25,000 | 3 – 12 months | 0% for first loan | Monthly or End of term | Only National ID required | 20 – 70 | Receive money in 15 mins |
| #3 |
CREZU |
₱1,000 – ₱25,000 | 2 – 4 months | 0% for first loan | Monthly or End of term | Only ID Card required | 18 – 70 | Easy loan approval |
| #4 |
FINBRO |
₱1,000 – ₱50,000 | 1 – 12 months | 0% for first loan | Monthly or End of term | Only ID Card required | 20 – 65 | Receive money in 10 mins |
| #5 | CREDITIFY Apply Now |
₱1,000 – ₱25,000 | 1 – 180 days | 0.1% | Monthly or End of term | Only ID Card required | All accepted | Approve Bad credit |
| #6 | CASHSPACE Apply Now |
₱1,000 – ₱25,000 | 2 – 4 months | 0% for first loan | Monthly or End of term | Only ID Card required | 18 – 70 | Easy loan approval |
| #7 | DIGIDO Apply Now |
₱1,000 – ₱25,000 | 3 – 6 months | 0% for 7 days | Monthly or End of term | Only ID Card required | 21 – 70 | Receive money in 4 mins |
| #8 | KVIKU Apply Now |
₱500 – ₱25,000 | 60 – 180 days | 1.2% per month | Monthly or End of term | Only ID Card required | 18 – 65 | Receive money in 5 mins |
| #9 | CASHEXPRESS Apply Now |
₱1,000 – ₱20,000 | 7 – 30 days | 0% for first loan | End of term | Only ID Card required | 21 – 70 | Receive money in 5 mins |
| #10 | MONEYCAT Apply Now |
₱500 – ₱20,000 | 7 – 180 days | 0% for first loan | End of term | Only ID Card required | 22 – 65 | Easy loan approval |
1. Illegal Operation
Loan sharks typically operate outside the bounds of the law. Unlike legitimate lenders, they lack the necessary licenses and permits required to conduct their business legally. Their operations are illegal, making their contracts inherently flawed.
2. Predatory Practices
Loan sharks are known for their predatory lending practices. They often impose exorbitant interest rates and use aggressive methods to collect payments. Their loan terms are designed to trap borrowers in a cycle of debt, making them highly unfair and exploitative.
3. Unenforceable Contracts
Due to their illegal nature, contracts made with loan sharks are generally unenforceable in a court of law. Their agreements are often riddled with unfair terms that are not recognized as legitimate or binding by the legal system.
Potential Problems with Loan Sharks
Even though loan sharks cannot take you to court, they can still create significant issues:
1. Harassment and Threats
Loan sharks may resort to harassment, intimidation, and threats of violence to coerce repayment. These tactics are designed to instill fear and pressure borrowers into paying up, even when the terms are unfair.
2. Emotional Distress
The aggressive and threatening behavior of loan sharks can lead to severe emotional distress. The fear and anxiety caused by their tactics can have a profound impact on your mental well-being.
What to Do If a Loan Shark Is Harassing You
If you find yourself being targeted by a loan shark, here are the steps you should take:
1. Stop Making Payments
Cease any further payments to the loan shark, especially if they are made under duress. Continuing payments could be seen as an acknowledgment of their illegal claims.
2. Gather Evidence
Document all instances of harassment. Keep records of any threats, abusive communication, or other forms of intimidation. This evidence can be crucial if you decide to take legal action or file a complaint.
3. Report the Loan Shark
Report their illegal activities to the appropriate authorities in the Philippines:
- Philippine National Police (PNP)
- National Bureau of Investigation (NBI)
4. Seek Help
Reach out to consumer protection agencies for support and guidance. The National Consumer Affairs Council (NCAC) and other relevant organizations can offer assistance and advice on how to handle the situation.
Remember: Loan Sharking is a Crime
Loan sharking is illegal and considered a criminal offense. By reporting these illicit activities and seeking help, you are not only protecting yourself but also contributing to the fight against these unlawful practices.