Loan sharking, which refers to lending money at very high interest rates, outside of legal financial systems, and often using unethical or illegal methods of debt collection, is illegal in most countries. Loan sharks operate outside the bounds of legal financial institutions and often target vulnerable individuals or those with poor credit histories. They may impose high interest rates, hidden fees, and use threats or physical violence to coerce borrowers into paying back their loans.
Governments and regulatory bodies usually take steps to prevent and prosecute loan sharks in order to protect consumers and maintain the integrity of financial systems. This is why there are laws and regulations in place to protect borrowers from predatory lending practices, and to ensure that all lenders operate within legal and ethical boundaries.
If you are struggling with debt and considering taking out a loan, it is important to do your research and seek out reputable lenders who operate within the bounds of the law. You should also be aware of the terms and conditions of any loan you take out and ensure that you can meet the repayment obligations before signing any agreements.
