What are the risks and disadvantages of taking money from loan sharks?

When the financial situation gets out of control, it is common to hear cases of people who choose to make money from a loan shark to try to get around the situation and get out of trouble.

This practice, however, is not recommended, as it is even a crime provided for by law and, in some cases, very dangerous for those who resort to the lender.

Alternatives for those who need a quick loan

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In this article, we will talk about the topic and show how loan sharking works, its risks, and consequences and the alternatives for those who need a quick loan, but that is within the law.

The more information the consumer has, the more aware his decisions will be, thus avoiding a lot of headaches and risks. To learn more, we invite you to continue reading!

How does loan sharking work?

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A moneylender is a person who lends money informally, that is, outside the system adopted by banks and/or financial institutions.

In general, those who resort to loan sharking are people who are in a critical financial situation, who need quick cash and who are unable to resort to traditional means because they are indebted or restricted in their name.

At first, the “help” of a loan shark may seem like a good idea, however, you need to be aware, as this practice can not only be very expensive but can also prove very dangerous, depending on the profile of the lender.

What are the risks involved?

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Taking money from loan sharks is a practice that presents several risks, which are not always considered by people when making this decision.

Eventualities can happen to anyone, however, even in times of despair, it is necessary to make well-thought-out decisions in order to avoid major problems and even to jeopardize not only one’s own integrity but that of the whole family.

Check out some risks of taking money from a moneylender below.

Moneylending is a crime

The first serious issue related to loan sharking is that this practice is a crime against the popular economy. According to the terms contained in item “a”, of law 1.521 / 51, in its article 4, anyone who practices loan sharking can be sentenced to a sentence of 6 months to 2 years in prison.

The activity can also be considered a crime against the financial system since the moneylender acts on his own and without the regulation of the Good Finance Bank. In this case, the penalty stipulated by law 7,492 / 86, in article 7, is from 2 to 8 years in prison and a fine.