Loanshark lending (with salary ATMs as collateral)

I know most of us are aware of the widespread lending practices of some lenders who charge high interest rates (we call it 5-6 scheme) where it usually ranges to 10% interest rate per month against the balance.

Though it is so high, many fell into this scheme because of laxity in the process of getting the immediate cash however the lenders will confiscate the salary ATM cards of the borrowers as a collaterals.

In my case, I realized I have gone too far. I was a victim myself. I realized that you are the loser in the end as u have to shoulder the very impossible interest rates. So I tried to make arrangements with the lender, telling the person up front that unless they make the rates workable for me, I cannot possible continue with the payments. However to no avail. The lender has the audacity to threaten me (first, report me to the company and hold my salary and when it did not shake me, told me I will face the consequence of jail term and the person will get a police to pick me up from my house).

Is this even possible? I mean, I know that they are operating these financial transactions as loan sharks in the kingdom and they are chargeable with Usury as it is against Islamic law to charge too much interests. To add, they are not licensed or part of a financial institutions (like banks) who are authorized to do banking retails such as loans/lending. But it seems that they are too confident to threat me even up to the point that they can make police complaint out of it.

What should I do to stand firm on my ground as I am willing to face them on the matters of workable payment arrangements but their harassments and threats are quite getting out of hand?

Appreciate any advise.

You defaulted on your credit card, then took out a loan from an illegal loan shark.
Perhaps local posters will offer suggestions but you appear to have engaged in what is likely to be illegal activity and that could well complicate things.

the money I took out from the loan shark was paid to cover up the delinquent cc balance, never realizing that it would be worse. so a friendly advise to all of those who plans to do the same. anyway my question is how far is their police authority (these lenders) to report you as this is their means of threat

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