What is a loan shark?

A loan shark is an individual or company that offers high-interest loans to borrowers who have difficulty accessing traditional credit from banks. Loan sharks often target people who are in financial distress and are unable to obtain loans at more reasonable rates. In Louisiana, loan sharks are illegal and the state has strict laws to protect consumers from this type of predatory lending. Under Louisiana law, it is illegal for anyone to charge a borrower an interest rate that is more than 25% annually, and a criminal penalty of up to two years in prison and a fine of up to $1,000 may be imposed if these rules are not followed. It is also illegal for loan sharks to accept personal items such as jewelry or other valuables as security for a loan. Under Louisiana law, any lender that breaks the rules on interest rates or attempts to collect payments by threats or other illegal or immoral methods may be subject to both civil and criminal penalties. This means that the lender may have to pay fines to the state, and may also be subject to other legal action by the borrower. It is important for borrowers to be aware of their rights and responsibilities so they can avoid becoming victims of loan sharking. If you are considering taking out a loan, it is important to make sure you are working with a legitimate lender who is following the law, and to understand the full terms and conditions of the loan before you sign a contract.

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