• Due to a glitch in the old vBulletin software, some users were "banned" when they tried to change their passwords at the end of February. This does not apply after the site was converted to Xenforo. If you were affected by this, please us viua the Contact us link in the footer.

Loan Shark Companies: What's the deal?


The Owl

Well-known member
Joined
Sep 11, 2011
Messages
2,967
I rarely hit this forum because I know nothing of economics and maybe this thread does not belong here, but I'm looking for a bit of information so thought I would try this.

If a person refuses to continue paying back a loan company which has the highest interest imaginable, and has already paid back the original loan 3 times over, what are the consequences for the borrower? We'll assume that broken legs are not in question although who knows?
 


EvotingMachine0197

Well-known member
Joined
Feb 17, 2006
Messages
8,629
Is the loan company licenced by the financial regulator (central bank now)? If not they are operating illegally.
 

Aindriu

Well-known member
Joined
Jun 28, 2007
Messages
8,702
As you said, broken legs - and a whole lot more. Especially here where we allow thugs like 'The Viper' to be debt collectors!
 

Watcher2

Well-known member
Joined
May 2, 2010
Messages
34,248
If they are licensed, you must have signeed a loan repayment agreement. If you have not repaind the loan AND ALL interest as containerd in the loan agreement, you are still liable legally. They can go after you in the courts. Most likely though, your broken legs wont look good for them in court so you will at least be saved the court appearance.

Get a loan on better terms somewhere else and pay those people off. Go to mainstream organisations like Credit Union.
 

thelimit

Well-known member
Joined
Jan 17, 2012
Messages
2,408
they may put you on the ICB Irish credit bureau as a non payer if they are licenced by the financial regulator

regardless if you have paid the sum 3 times over you would have signed up to the agreement eg you knew what the total repayment would be and would have had to sign for same

my advice is if you have paid 3 times the amount then try pay the rest as you may find it hard to get credit in the future if you default on it re a mark on the ICB

you may also try if your finding the payment difficult get it reduced to what you can pay afford

above are only suggestions for you
 

Spanner Island

Well-known member
Joined
Feb 22, 2011
Messages
24,199
Loan Shark Companies: What's the deal?

They're c***s who should be avoided like the plague.
 

Trainwreck

Well-known member
Joined
Sep 6, 2012
Messages
26,788
The answer is in many instances the company doesn't get paid, making a loss even on the principle.

Why do you think the interest rate is so high to begin with?
 

henryhill

Well-known member
Joined
Jun 2, 2007
Messages
520
This kind of thing is widespread in the US - payday loans and that sort of thing.
 

Watcher2

Well-known member
Joined
May 2, 2010
Messages
34,248
If you feel you are being hard done by I'd suggest you go to MABS with your documentation - all of it - the loan Agreement and proof of your repayments. They will be able to advise you. Alternatively you could just go to the Financial Regulator and make a complaint (although I think you will need to make a written complaint and exhaust your lenders complaint handling system (if they have one) first).

Good luck.
 

livingstone

Well-known member
Joined
Mar 3, 2004
Messages
24,398
There's relatively little protection assuming you signed up for the loan and had all the info (even in small print). Unless they've tried changing the terms, there's no legitimate way to just stop paying - technically you owe what you owe.

As someone suggested though, the best way is to figure out how much you need to just break the contract. Most contracts will have some early repayment figure - once you know that, find some other low-interest way to get the money and end the contract asap because it really is money down the drain.

As someone suggested, MABS are the best people to talk to - they can go through all the options for debt restructuring.
 

Johnny Zordan

Well-known member
Joined
Oct 16, 2012
Messages
491
You don't have to pay back a loan "three times over" with any licenced money lender. Licenced money lenders are not really as bad as the mainstream media like to make out. With a licenced money lender expect to pay €15 interest for a €50 loan and up to €150 for a €500 loan. Not idel but 100k + people have no other way of getting credit.
 

Watcher2

Well-known member
Joined
May 2, 2010
Messages
34,248
You don't have to pay back a loan "three times over" with any licenced money lender. Licenced money lenders are not really as bad as the mainstream media like to make out. With a licenced money lender expect to pay €15 interest for a €50 loan and up to €150 for a €500 loan. Not idel but 100k + people have no other way of getting credit.
The highest legal interest rate is something like 189%. I kid you not. I'd provide a link if I was bothered. Either believe it or dont. (sorry for the blasay attitude).
 

Trainwreck

Well-known member
Joined
Sep 6, 2012
Messages
26,788
The highest legal interest rate is something like 189%. I kid you not. I'd provide a link if I was bothered. Either believe it or dont. (sorry for the blasay attitude).
These companies trade legally with rates of 4000%-5000% APR, which is the rate if say you paid someone €40-€50 to borrow €300 for a couple of weeks.
 

Radix

Well-known member
Joined
Aug 31, 2010
Messages
10,031
I rarely hit this forum because I know nothing of economics and maybe this thread does not belong here, but I'm looking for a bit of information so thought I would try this.

If a person refuses to continue paying back a loan company which has the highest interest imaginable, and has already paid back the original loan 3 times over, what are the consequences for the borrower? We'll assume that broken legs are not in question although who knows?

In situations where the loan agreement is relatively recent, and the sum involved is relatively small, and the borrower has severe financial hardship after already paying back three times the original amount, the lender can usually be shamed in to dropping his ridiculous demands by having a few words with a few community activists. :)

If it's yourself that's in bother Owl, just let me know and I'll hang an Angelus bell outside their door.

Drives them wild I tells u!
 

Watcher2

Well-known member
Joined
May 2, 2010
Messages
34,248
These companies trade legally with rates of 4000%-5000% APR, which is the rate if say you paid someone €40-€50 to borrow €300 for a couple of weeks.
Not in Ireland....unlesas it changed in the last couple of years.
 

Dan_Murphy

Well-known member
Joined
Feb 22, 2010
Messages
3,811
The answer is in many instances the company doesn't get paid, making a loss even on the principle.

Why do you think the interest rate is so high to begin with?
Legal ones like Wonga.com and so on maybe, but those kinds aren't the majority who operate in this business.

EDIT: The Owl, if they are a legal company best thing I can recommend is going to the ombudsman or someone like that. If they are not a legal company then go to the police.

EDIT 2: AREN'T the majority.
 
Last edited:

Trainwreck

Well-known member
Joined
Sep 6, 2012
Messages
26,788
Legal ones like Wonga.com and so on maybe, but those kinds are the majority who operate in this business.

EDIT: The Owl, if they are a legal company best thing I can recommend is going to the ombudsman or someone like that. If they are not a legal company then go to the police.
Well, yes.

As ou point out, if they are providing financial services without authorisation then repayment isn't the problem.
 

The Owl

Well-known member
Joined
Sep 11, 2011
Messages
2,967
Thank you everyone for all the answers, suggestions and advice. Yes, the firm is legal, although there have been recent denouncements by various local politicians especially as the collecters tend to wait outside the post office on S/W payment days, which is not nice.

I made the mistake of borrowing from this company which was recommended by a few people I knew, to pay for my daughter's oil for the winter months last year and although I try and pay back more than required I never seem to see an end in sight. Now looking at my neighbour's book, she appears to have been paying back forever and my heart sunk. She and another friend told me the story of paying back more than 3 times the amount borrowed.

I will go try M.A.B.s and see what they have to say. Again, thank you for your help. Stupid of me I know, but desperation makes good customers for loan companies, obviously.
 

New Threads

Popular Threads

Most Replies

Top