LOAN SHARKS

Loan sharks:

Loan shark is a person or body that offers unsecured loans with high interest rates to individuals, often illegally run return blackmail or threats of violence.

Throughout history, usury law distribution made the loan sharks. Many moneylenders to between legal action and extra-legal. In the Western world, the shark has a recent loan is a function of the criminal underworld, but is less common in life to comply with the law.

United States:

Nineteenth century salary loan:

When at the end of the 19th century, interest in the legal relationship were not profitable small loans and lenders are both frowned upon by the public, for example, the borrower's loans are considered to be irresponsible person who is not able to control the budget. Banks and big financial institutions stayed away from all such loans. There was, however, many smaller lenders offer loans to profitable, but illegally high interest rates. They presented themselves as a legitimate and active publicity out of Office. They only seem to customers with whom they feel are a good risk: steady and respectable work (regular income and reputation to protect), married (not leaving the city) and the legitimate reasons for the loan. Players, criminals and other disreputable, unreliable has been avoided. They had borrowed to fill out and sign a contract, it seems. Although the contract has not been legally, they are at least evidence of loans that lenders could use to blackmail a defaulter.

Coax a defaulter to pay, the lender could result in legal action. It's a bluff, since the loan was illegal; lender preyed on the borrower's ignorance of law. In addition, the lender requested public shaming of such complaints, the borrower's employer, who disdained a indebted employees and often shooting them or shout out needs at the debtor's home. Or from a desire to protect their reputation for gullibility, or, the loans are usually succumbed and paid.

Many customers who work in large companies, such as railways or public works. Larger organizations are more likely to have already been fired by the loan sharks as powerful as extortion, is owed by them in a more impersonal, workers. It was easy to find out which organizations have done this and not to collect information on a myriad of smaller enterprises. Larger firms have more job security and more opportunities for promotion, and staff more offerings to ensure they would not get a shot. Loan sharks can also be a large company of bribing paymaster provides information on many of its employees. Regular wages and a came to negotiate a repayment plan for paydays and simple.

The size and the repayment plan are often adapted to meet the debtor's medium. The smaller the loans, a higher rate of interest, such as costs, monitoring and pursuing a defaulter shall be such that the size of the loan. The lender to the defaulters approach also differs: some were taikytose and logical, easy-to-view extensions and slow to harassment, and the other is attempting to unscrupulously milk all they can from the debtor (e.g., imposing late fees).

In the 20th century the routes:

the 1920s And 1930s, the American prosecutors begin to notice the use of violence to carry out the debt illegal lenders and the emergence of a new breed. Small new lending law, it is almost impossible to pose a threat to customers with a veneer of legality and many customers were less likely to raping, because they have been or are self-employed or disreputable. So violence is an important tool, although none of them unique. Loan shark operations as lender, which means a greater freedom of action, the lenders and less paperwork and bureaucracy for its clients. They also are ready to serve many legal risks of borrowers, lenders do not touch.

The threat of violence is rare and has gone through, however. One reason may be that Nežalokite, the debtor may mean he could not work and therefore will never be able to pay off its debt. Many borrowers are often aware of these security risks are mainly in the city, and that they can get away with cash payments. The consequence is that the borrower pay will be cut off from most of the loans in the future, this is serious for those who regularly rely on loan sharks.

One of the most Violent loan shark market is illegal gambling operator who would not reveal themselves, have the right to collect debts. They shall cooperate with the loan sharks to provide credit and collect payments from your players. The thieves and other criminals, a exile that often were not changing, it is also served, and this relationship will also allow