Is it illegal to take money from a loan shark?

It’s important to underline that, while it’s illegal to lend money without authorisation, it’s not illegal to borrow from a loan shark. So, if you have borrowed from a loan shark, you don’t need to worry that you will get in trouble with the police by reporting them.

What is the punishment for loan sharking?

Loan Shark In most jurisdictions Usury laws regulate the charging of interest rates. Loan sharking violates these laws, and in many states it is punishable as a criminal offense. The usual penalty imposed is a fine, imprisonment or both.

Do loan sharks go to jail?

Loan sharks sometimes frighten people by saying they’ll be prosecuted and even sent to prison if they don’t pay up. This can’t happen – not repaying a loan from an unlicensed lender isn’t a criminal offence.

What happens if you don’t pay a loan shark back?

They’ll immediately withdraw the money from your bank account if you’ve given them access as part of the loan agreement. If the debits don’t go through, they may break the charge into smaller chunks in an attempt to extract whatever money is in your account. Each failed attempt can trigger a bank fee against you.

How do I fight loan shark harassment?

If you feel you or anybody you know has worked with a loan shark, you can call the X-Ah Long hotline at 1800-924-5664. Alternatively, you can file a complaint with the Registry of Moneylenders at 1800-2255-529.

What happens if maid borrows from loan shark?

Do not reply or interact with the loan shark. Notify the police via the police emergency hotline “999” or via i-Witness, or call the National Crime Prevention Council’s X-Ah Long hotline at 1800-924-5564. Report the number as “Spam” and block the number using readily available spam filter application.

What happens if you don’t pay back a bank loan in South Africa?

If you miss a payment, your entire payment plan will be annulled. For your debt review to be successful, you need to stick to every monthly payment in your repayment plan so that you don’t put your debt review agreement at risk.

How do I report illegal loan sharks?

Loan sharks prey on desperate people and their activities must be reported. If you wish to lodge a complaint, you need to complete Form 29. This is available on the website ncr.org.za. You can also get one by emailing [email protected] or by calling 011 554 2700.

Should I pay the loan shark?

Keep calm; don’t make further payments to the loan shark But taking loans comes with the con of paying extra money in total because of interest rates. Unlike with a licensed moneylender, dealing with a loan shark can endanger your finances more.