Tag Archives: loan shark

How to Effectively Deal with Loan Sharks in the Philippines (2024)

Encountering a loan shark in the Philippines can be a daunting and distressing experience. Their predatory practices often leave individuals feeling trapped and overwhelmed. Here’s a comprehensive guide to help you navigate this challenging situation and regain control: 1. Cease All Payments Immediate Action: Stop making any further payments to the loan shark. Their interest […]

7 Compelling Reasons to Avoid Loan Sharks

Exorbitant Interest Rates Loan sharks are notorious for charging outrageously high interest rates, often exceeding 100%. Their schemes prey on individuals in desperate financial situations, offering seemingly quick and easy loans. However, the catch is that these loans need to be repaid within a very short period. Borrowers might be lured by the convenience of […]

Laws Against Loan Sharks in the Philippines (2024)

In the Philippines, various legal measures are in place to combat loan sharking and safeguard borrowers from exploitative lending practices. Here’s an overview of the key legal frameworks and enforcement mechanisms designed to protect consumers: Main Laws Anti-Usury Law (Act No. 2031) This pivotal law establishes a cap on the interest rates that lenders can […]

Can a Loan Shark Take You to Court?

In the Philippines and many other countries, loan sharks cannot legally take you to court. Here’s a detailed breakdown of why: 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 […]