Loan sharks are known to target struggling, desperate people in need of money. They operate illegally and are noticeable by the extremely high interest rates they charge. They often use intimidation to get people to cough up money. You may fall into this trap if you don’t compare payday loans or make an ill-informed borrowing decision.
How to identify a loan shark
A loan shark rarely supplies people with paperwork, thereby making them hard to track down. If you do not get proper paperwork while availing a payday loan, you should beware. Loan sharks will usually come to your door and tempt you with false promises. Often, they will ask you to hand over your belongings as “security.”
When borrowing money, always make sure that the amount along with the interest to be paid is written on paper and signed by both parties; the reason being, loan sharks tend to increase a person’s debt quietly without them getting alerted. By being aware of these things, you will certainly be able to steer clear of loan sharks.
Ways to avoid loan sharks
The easiest way to not get trapped by loan sharks is by approaching a professional broker. The FCA Register is the best place to verify whether your loan provider is authentic or a fake. You should never hand over your bank details to strangers, even if they lure you with attractive offers. Always verify their credentials before trusting your money or your bank details to them.
Furthermore, always compare payday loans before taking a loan. You can do this through an FCA-authorised payday loan comparison site. allthelenders is not just authorised but also regulated by the FCA. It is the first short-term loan comparison site in the UK. The website provides completely independent results that make sure you always get the best deal. Remember, with allthelenders, you get access to professional and trustworthy payday lenders.