All over the world, particularly in the United States and Great Britain, the payday loan industry has come under intense fire from regulators and consumer activists. As a result of numerous complaints and multiple reports of debt spirals, elected officials are looking to regulate the industry more than it does now.
A new report entitled “Credit 2.0” from the Consumer Finance Association (CFA), a group representing British payday lenders, argues that greater rules and stricter regulations applied against bad credit loan companies are forcing consumers to tap into loan sharks.
“The bad credit loan industry already has strict regulations and the majority of lenders abide by those rules. Tightening of this noose will have a negative impact on lenders forcing them out of business while allowing loan sharks to take their place”, said Chris Lions.
We haven’t seen the loan shark industry since the time of the bootleg era and numbers racket (1920s to 1940s). Loan sharks would provide you with money at a very high interest rate. If you didn’t pay it back then loan sharks would break your legs. Anyone who has ever seen a Warn Bros. gangster picture would know. Read More