Welcome to Redeem the Commute. I’m Ryan, your host for the Money Course.

Worst kind of credit is Loan Sharks.

• Have you been offered a cash loan?
• Have you been threatened when you couldn’t pay?
• Has your bank card been taken from you as a security?
• Does what you owe keep growing even though you are making payments?

If you can answer yes to any of the above then you may have been bitten by a loan shark.

• A Loan Shark is someone who lends money without the correct permissions.
• Loan Sharks rarely, if ever, give any paperwork.
• If payments are missed, they often use intimidation and violence to get money from their ‘clients’.

How to Spot a Loan Shark:

A loan shark may:

• Offer little or no paperwork, such as a licence, credit agreement or record of payments
• Increase the debt or add additional amounts to it without your permission
• Refuse to give information, such as the interest rate or how much you still owe
• Take items as security, such as passports, bank cards or driving licences
• Not allow you to settle your debt
• Get nasty, resort to intimidation, threats or violence

Avoid this at all costs! If you, or anyone you know, is experiencing any of the above or has any knowledge of loan shark activities then contact a financial or law enforcement professional IN CONFIDENCE.

This doesn’t mean every legal form of credit is good for you, and has your best interests at heart! The might still charge a huge APR, despite being legal.

Question: What kind of APR legal sources of credit might get away with charging. What do you think is the maximum?