Loan Pirates Preying on Innocent Clients

Predatory loan industries have been preying on innocent clients for years now, forcing them to be buried in debt by paying their current liabilities with new loans. This cycle has been prevalent in the industry until 2010 when the state of Illinois stepped in to fix the problem.

The lenders have been charging up to 340% in interests that lasted in short intervals thus started the undying debt of clients. In a yearly basis the rate’s ratio reached 403% for a two week due of $100.  Cities and towns that have several pawnshops, clubs, and shops that sell liquors and other financial intermediaries are prey for these kinds of loan deals.

However, there are communities that have seen the problem and officials remedied the situation by limiting their loan dealers. One of these towns is Chicago which according to experts is quite interesting since they had a large population of 28,000. The community’s mayor is trying to further cut the number until only one remained- in order to do this, their local officials are just waiting for the licenses of the five loan shops to expire so that only one will exist in the city.

Illinois is trying to follow the footsteps of Chicago Heights, and take control of these loan pirates in order to regain hold of their city; however there have only been little improvements. These loan sharks are preying on frail customers, which included retired senior citizens who only had stable pensions and are unable to work.

Though these establishments are a bit better than the underground businesses such as the Mafia, because they do not hurt or kill their clients when they fail to pay, citizens pay for their decision to loan and go into deep debt because of their schemes.

Their strategy is to invite individuals who cannot get a loan from banks and credit unions. However, right now, the economy is starting to regain its balance and lend to poor and less fortunate clients with not-so-good credit records.

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