Wednesday, August 5, 2009

What interest rate is considered "loan sharking"?

Loan sharking is charging an exhorbitant amount of interest on a loan. But how much is exhorbitant?



I received an offer, for a credit card, and the default interest rate is 31.9%! Is it possible that 32% interest is not considered loan sharking? How can that not be considered loan sharking?



The premium interest rate is 13.49%. I would consider that to be loan sharking.



What interest rate is considered %26quot;loan sharking%26quot;?





The biggest difference between a loan shark and a legitimate loan is the method they use for paying it back. If they send Guido to bust your knee caps if you%26#039;re late on a payment, it probably is a loan shark you dealt with.



What interest rate is considered %26quot;loan sharking%26quot;? loan



Many of the %26quot;Payday Loan%26quot; companies are being investigated for 30% interest rates. I have not seen the rate used stated as a definition of loan sharking. Most cases are for loans that are not in writing, but enforced through physical harm.

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