Posted on 2013-11-25
Nothing could be more stressful than debt from loan sharks going awry. Singapore has been rife with many untoward incidents involving illegal money lenders and harassed debtors. Aside from the fact that such activity has some legal repercussions, there are many other reasons why it’s best not to have any dealings with loan sharks. Here’s why.
Ridiculously High Interest Rates
Anyone who has borrowed some money from loan sharks would tell you that these money lenders don’t offer the best interest rates around. Sure, the tempting fast processing time lures people who are in dire need of funds. But once you’re hooked with the debt, they’ll string you along with exorbitant interest rates which make paying off the smallest debt nearly mission impossible. In fact, it’s common to hear stories of borrowers whose debts spiraled out of control. And left with not much choice, they’re forced to live a life of crime and work for loan sharks as runners.
Violence and Harassment
Loan sharks and other illegal money lenders can’t threaten you with legal actions and they don’t bother to send polite letters of repayment either, so most of them resort to illegal means to make you pay your loans – threats and harassments. If you’ve lived in Singapore long enough, you’ll know of those horrid stories: death threats, vandalized homes, family locked up inside their home, and the list goes on.
In August of this year alone, a loan shark runner was arrested for committing more than 100 harassment offences to debtors who can’t fulfill their payments. Some of the runner’s despicable acts include burning the doors of HDB flats, splashing paint on properties, and locking people inside their homes using a bicycle lock on the gate.
Of course, violence is just half the story. Family members usually bear the brunt of the punishment as they will be subjected to the embarrassment and trauma of the harassment. In addition, innocent bystanders and neighbors could be unintentional victims of the violence as well.
People who resort to borrowing from loan sharks usually do so because of emergencies or they have difficulty getting loan from financial institutions. However, this seemingly easy solution to money woes is a path laden with angst and problems. That’s why unless getting bothered with these shady loan operators seems acceptable to you, it is best not to deal with them at all.