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

Were are ur location

Location pls im interest of ur loanshark

Ken_javier003 :

Location pls im interest of ur loanshark

This thread is all about the extreme dangers of using loansharks, even the possibility of you getting beaten up or worse, and you're interested in contacting them?

Without wishing to seem rude, perhaps I could suggest you see a mental health specialist.

Practically speaking, the loan sharks have no legal means to compel you to pay.  Especially since there is no documentation of any "loan" or "owing".  Even if there is documentation, it is a personal loan from the shark to you and to get it back will require a lot of effort through the court.

Why don't you just cancel your ATM card by approaching the bank?  and get a new one issued?

Only risk is that they can hassle and threaten you.

That would depend on if they were nice loan sharks or violent psychopath loan sharks.
Nice ones might well say, "hi hum. that's life", but violent psychopath ones might leave you bleeding in a ditch wishing to whatever god you pray to you'd never borrowed the money and wondering if testicles can grow back to their normal shape.

I still very strongly suggest you stay away from such people.

Yep that is the standard danger when you mess with loan sharks.

Violence of that sort is not common in the GCC due to strict punishments e.g. attempted murder or armed robbery charge in Saudi can lead to beheading, so understandable :).  So they mess with you but it usually doesn't descend into extremes - in most cases, they resort to false police cases which creates a lot of problems for expats.

If you really want to settle things, I suggest that you get the help of your Saudi HR or your Saudi boss (if possible). Since they are locals, they have the 'influence' or 'wastah' on some people in the Government.

The loansharks will think twice of harming you when you have the 'backup' of Saudi nationals. Even if they go to the police, your Saudi colleagues will surely help you.

Just an advise.

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