How to Spot a Loan Shark

Speed, ease, and convenience – a few of the reasons we solicit loan sharks. With their lenient lending criterion and instant loan approval, it’s hard to say no. However, it’s hard to escape the wrath of illegal money lenders once you’ve started dealing with them. Wildcat Lending seriously recommends you only borrow from licensed money lenders.

After all, who really wants to deal with exorbitantly high interest rates? Better yet, being harassed or threatened when your payments are late? Simply put, failing to adhere to a loan sharks’ demands can lead to a lot of harm. But, rest assured you’ll have no such problems while acquiring loans from DFW licensed money lenders. Wildcat Lending, with its legitimate and fast loan services, will save you the hassle of dealing with uncouth money lenders.

Questionable contract or no contract at all

A good number of loan sharks do not give loan contracts – this is a huge red flag. For those that issue contracts, they include unnoticeable provisions that end up being unfair to the borrower. Loan sharks usually try to avoid transparency in transactions as much as possible. Thus, you should be careful enough to read and understand the contracts and as questions especially concerning deductions and payment.

Take personal items as security (passports, bank cards or driving licenses)

Beware because legal and legitimate money lenders don’t ask for such security items. Any company or person in the name of a money lender that asks for personal items such as passports, bankcards or driving licenses is clearly a loan shark. Possession of a client’s property is highly unlawful and should be reported immediately.

The lender is too pushy or too aggressive

Most loan sharks have sweet tongues, especially when they are convincing you to take their offer. Most even go to the extent of encouraging you to take more than we need. They often use unscrupulous methods to get people to sign their contracts, usually because they’re aware that they’re a last resort. Therefore, entering into any loan agreement should be done after very careful consideration.

Threats and abusive language

Loan sharks usually depend on threats, intimidation and abuse to collect money from debtors. They do this because most of their fees are outrageous and thus, their debtors struggle to pay up. Guiding principles on money lending do not allow any licensed money lenders to threaten a debtor in any situation. However, it’s hard to use this trait to identify a loan shark at first sight. These tactics aren’t employed until after a loan has been issued. This is why one should thoroughly research a loan lender before entering into an agreement.

High-interest rate and additional fees

Money lenders need interest – it’s how they generate revenue. However, loan sharks will either charge the maximum interest rate allowed by law or try to nickel and dime you with additional fees, i.e. application fees, processing fees & deposit fees.

The lender wants to make quick deals

Some payday loan lenders aren’t looking to solve our financial predicament. In fact, some seek to confuse us, because the more indebted to them we are, the more they benefit. The loan shark, among all lenders, will surely be the one who ‘fast talks’ you and gives a borrower little time to make decisions. They’re predatory beasts who worry a potential client and source of income might have a change of mind- be very wary of them.

Lack of legitimacy

Before taking a loan from any money lender, we must cross-check for legitimacy. Any genuine lender should be listed as having current authorization or dated licensing to lend money. Check this on the ministry of law websites where licensed money lenders are listed to confirm legality. In cases where we find out late the issue of loan sharks, we should not agree to be intimidated by these unauthorized money lenders, because they have no legal rights to recover debt, in fact, they have no lawful right to make you pay the loan back.

Unidentified and unclear office locations

Because they are scavengers, loan sharks can be found in underbanked localities, on the internet or through personal links. Their funds are usually from unidentified sources and they work from personal businesses or unregistered entities. Their greed and love for instant gratification are usually what hinder them from following the laws and guidelines for starting a legit money lending business. If the office location can’t be found on the Ministry of Law’s registry, Wildcat recommends you don’t solicit their services.


If we take a good look at these signs, it is important to note that loan sharks are unethical and a danger not only to your finances but your security. Their violent nature and frequent use of intimidation tactics don’t make it any easier. Run for the hills if you spot one.

Whenever you identify loan sharks you should contact relevant authorities to ensure they face the long arms of the law. Furthermore, we recommend doing business with us. At Wildcat we’re as ethical, reputable, and true as they come. We only seek to offer the best and safest money lending services. Understanding one’s rights when it comes to borrowing money is vital to their financial security. There are thousands of loan sharks waiting to harvest innocent people’s hard-earned money simply because they lack the necessary information to make good decisions.