“The term “loan shark” or as they are commonly known, has been widely used to describe those who lend small sums of money at higher interest rates than that charged by licensed financial institutions to less discerning borrowers. There are many people who take money from loan sharks who do not know the compounding interest effect on the loan principal. When the borrower fails to pay as agreed in the “contract”, the interest is added to the principal and this amount becomes the new principal – failure to pay subsequent payments will result in the ballooning of the outstanding loan amount rather quickly. This is the main reason borrowers are unable to settle their loans with loan sharks.”
A desperate dad driven to brink of suicide by evil loan sharks today reveals the depths of his nightmare.
After taking out a “one-off” £20 loan from them he was sucked into borrowing as much as £7,000 as his debts spiralled out of control.
For two-and-a-half years he was bombarded with phone calls demanding money. The sharks threatened to break his windows and banged on his door in the middle of the night.
The jobless ex-RAF serviceman, 42, says the ruthless crooks regularly turned up at his house with other thugs in their car.
The threats mounted and, unable to see a way out, he sat down and lined up a row of pills, moments from taking his own life.
He said: “One morning I woke up and thought I can’t do this any more. The constant hounding just breaks you down.”
But at the last minute he stepped back from the brink and plucked up the courage to call the Illegal Money Lending Team – a government-funded squad fighting loan sharks.