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Thread: Loan Shark Companies: What's the deal?

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    Politics.ie Member The Owl's Avatar
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    Default Loan Shark Companies: What's the deal?

    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?
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    Is the loan company licenced by the financial regulator (central bank now)? If not they are operating illegally.
    Redacted.

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    Politics.ie Member Aindriu's Avatar
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    As you said, broken legs - and a whole lot more. Especially here where we allow thugs like 'The Viper' to be debt collectors!
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    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.

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    Politics.ie Member thelimit's Avatar
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    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

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    Politics.ie Member Spanner Island's Avatar
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    Loan Shark Companies: What's the deal?

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

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    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?

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    Politics.ie Member henryhill's Avatar
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    This kind of thing is widespread in the US - payday loans and that sort of thing.

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    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.

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    Politics.ie Member livingstone's Avatar
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    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.

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