Why do people think loan sharks are bad people?

[Tallooksmaxxer]

The loansharks are taking a huge risk by lending you. You got rejected by conventional financial instutions because your income is low and your credit score sucks.

Of course he is going to charge high rates, are they running a charity? Thats the price of taking big risks.

They get critizied mostly because of their unconventional methods to enforce their debtors to pay their debt. They dont have any legal basis for this business, so they need to take some protective measures to keep their business running.

At the end of the day, loansharks dont forcefully lend money to you.

 

[hebbewem]

Because they are loaning to stupid and down on their luck people that why its bad

 

[Gandy]

Because it is predatory lending?
There are people on this planet who have to choose between taking loans at exorbitant rates or dying of hunger or lack of medical care.

Yes, they aren't "forced" to take that loan at 60% monthly interest, in the same sense as a tourist is not forced to hand over his wallet to a favela robber at gunpoint. You have a choice, but making the wrong one can cost your life.

Predatory lending is outlawed because it preys on those who have no options left. The loan shark know the debts often cannot be repaid, so they use violence on the lenders and create even more debt due to imaginary "accrued interest" payments - suddenly the person down on his luck due to an unexpected $2000 medical bill is $15,000 in debt and forced to smuggle drugs for that loan shark to save his/her life.

Keep in mind, these thugs business model is expecting the person cannot pay back, so they can create more imaginary debt and keep them in debt slavery for years. They give them $500, a thousand, and in the end they wont let them off the hook until they've paid tens of thousands.

 

[incel194012940]

Because it is predatory lending?
There are people on this planet who have to choose between taking loans at exorbitant rates or dying of hunger or lack of medical care.

Yes, they aren't "forced" to take that loan at 60% monthly interest, in the same sense as a tourist is not forced to hand over his wallet to a favela robber at gunpoint. You have a choice, but making the wrong one can cost your life.

Predatory lending is outlawed because it preys on those who have no options left. The loan shark know the debts often cannot be repaid, so they use violence on the lenders and create even more debt due to imaginary "accrued interest" payments - suddenly the person down on his luck due to an unexpected $2000 medical bill is $15,000 in debt and forced to smuggle drugs for that loan shark to save his/her life.

Keep in mind, these thugs business model is expecting the person cannot pay back, so they can create more imaginary debt and keep them in debt slavery for years. They give them $500, a thousand, and in the end they wont let them off the hook until they've paid tens of thousands.

wow that’s a really good buisness strategy

do you know how to become one?

Drug smuggling is a bit extreme I think selling ppl into prostitution and hard labour is enough