Article By Eric Heisig, cleveland.com
CLEVELAND, Ohio (6/2018) — The term “loan shark” might bring to mind a scene in a movie where a gangster takes a crowbar to the kneecap of a down-on-his-luck gambler who can’t make good on repayment of a loan.
The term “payday lender” might bring to mind an image of a legitimate business, complete with a bright green sign, that offers loans at extremely high interest rates targeted at people with low incomes or who would otherwise not qualify for traditional financing.
Are LOAN SHARKS and PAYDAY LENDERS the same?
Are LOAN SHARKS and PAYDAY LENDERS the same?The answer: Sort of.
Historically, a “loan shark” describes a lender that charges very high rates, Anne Fleming, an associate law professor at Georgetown University, said in an email.
MUSINGS FROM DIANE:
Why do some people feel it necessary to make their money by bullying others who cannot afford to give up even one dollar? Payday lenders (now some of our larger banks have entered this world) are in the business for one reason only – to make a “killing” offering loans to desperate people. The end result is these people can rarely pay off the loan and end up filing bankruptcy or, in the case of registration or title loans, losing their vehicles. Is there room for a reasonable interest on short term loans – absolutely!! But, let’s not force people into bankruptcy or to lose their jobs just because they need a loan for a few weeks or months.Share This post, Choose Your social network!
About the Author: Diane Drain, attorney and retired law professor
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys. *Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*