- Exercise caution when dealing with lenders to steer clear of the distressing ordeal of borrowing from a loan shark. Keep these pointers in mind:
- Be wary of unsolicited contact from lenders. Loan sharks typically glean contact information from public records to target potential victims. If you receive an unexpected email or text message from an unfamiliar sender offering a loan, simply disregard it. Legitimate lenders do not solicit in this manner.
- Recognize the indicators of loan sharks. This encompasses aggressive sales tactics aimed at pressuring you into taking out a loan.
- Verify the lender’s licensing status. Utilize the Securities and Exchange Commission (SEC) website to confirm whether the lender is duly authorized to operate in the Philippines.
- Consult the roster of known loan sharks in the Philippines. Refer to the SEC’s compilation of lenders with revoked or suspended certificates of authority. Some entities with revoked authority to function as lending companies include: Robocash Finance Corporation; Kwarta Line Lending Inc; 163 Lending Corporation; Bymoney Lending Corporation; Greenfund Credit Corporation.
- Insist on documented agreements. Proper paperwork such as application forms, loan contracts, and receipts should be provided. Failure to furnish these documents indicates illegal operations.
- Thoroughly review and comprehend the terms and conditions. Some lenders may offer convenient access to credit but often levy undisclosed extra fees buried in the fine print of their agreements.
- Scrutinize the interest rates. Loan sharks impose exorbitant interest rates, often reaching 20% or higher, and impose demanding repayment terms.
- Refrain from signing blank documents. This is a significant warning sign. Any document bearing your signature can be exploited for coercion or binding you into an agreement, even if you did not explicitly consent.
- Handle your loans responsibly to avoid resorting to loan sharks to settle outstanding balances.
- Explore alternative avenues for borrowing funds. If declined for a personal loan by a bank or government agency, consider other licensed private lenders who may entertain approval despite a low credit score or income.
CashLoanPH Changed status to publish 24/03/2024