The Consequences of Not Paying a Loan Shark

Loan sharks are predatory lenders who offer high-interest loans without requiring credit checks. They often target financially vulnerable individuals who may not qualify for traditional loans. While borrowing from a loan shark may seem like the only option in desperate times, failing to repay them can ruin your life.

Loan sharks operate outside the law and use unscrupulous tactics to collect debts. If you default on a loan shark debt, you could face harassment, threats, violence, endless debt, and even criminal charges.

Aggressive Harassment and Intimidation

Once you fall behind on repaying a loan shark, they will start aggressively harassing you to collect. A loan shark may:

  • Make frequent phone calls to your personal and work numbers
  • Show up at your home demanding repayment
  • Follow or stalk you
  • Send threatening letters or emails
  • Contact your friends, family, and coworkers about the debt
  • Threaten to reveal embarrassing or damaging information about you
  • Damage your property or possessions

This harassment is meant to intimidate you and pressure you to pay. Loan sharks want you to feel scared and anxious so you will do whatever it takes to repay them.

Explicit Threats and Potential Violence

Along with harassment, loan sharks often issue explicit threats to collect on debts. They may threaten:

  • Physical harm to you or your family members
  • Kidnapping or human trafficking
  • Damaging your home or vehicle
  • Ruining your reputation
  • Getting you fired from your job

In extreme cases, loan sharks have assaulted, tortured, or even killed borrowers who didn’t pay up. You may feel helpless living under the shadow of threats and violence with no way out of your debt.

Financial Ruin and Endless Debt

With their astronomical interest rates and fees, loan sharks can trap you in endless debt even if you make payments. A small $500 loan can eventually cost you thousands with compounded interest and penalties.

You may be forced to take out additional predatory loans just to pay off previous ones. Loan sharks may pressure you into signing over valuables like your car or home to satisfy the debt.

Being unable to repay a loan shark can mean financial disaster. You may have to file for bankruptcy, lose your assets and savings, or be left penniless.

Potential Criminal Charges

In many places, loan sharking is illegal due to the predatory lending practices and exorbitant interest rates. If you fail to repay, a loan shark may threaten to press charges against you for theft or fraud.

Of course, the loan agreement you sign with a loan shark carries no legal weight since these lenders are not licensed or regulated. But the threats could coerce you into paying, even if it means breaking the law yourself.

In other cases, the authorities may file charges against the loan shark for extortion, racketeering, or usury violations. As a victim, you may be called on as a witness to provide evidence against the lender.

Seek Help to Escape the Debt Trap

If you are trapped in a loan shark’s debt spiral, contact the authorities immediately before the harassment escalates. You can report loan sharks anonymously to the police and consumer protection bureaus.

Reputable credit counseling agencies can also help you get out of debt, repair your finances, and avoid these predators in the future. Many offer free consultations and debt management assistance.

While the consequences seem dire, remember that you have options. Loan sharks operate illegally, and you should not live in fear. Seek help from trustworthy sources to regain control of your finances and your life.


What is the minimum credit score for a boat loan?

Most lenders will require credit scores of at least 700. With a lower credit score, you can still obtain a boat loan, but be prepared to pay a price in the form of a higher interest rate or a bigger down payment.

Should I get preapproved for a boat loan?

A good first step before starting to look for a boat is to get preapproval. When a lender has preapproved you, it means you are eligible for a certain loan amount. The loan terms and interest rates vary among vendors.

Can you get pre approved for a loan with no credit?

It is possible to obtain a loan despite having poor or no credit, but lenders will probably charge you a higher interest rate than they would if you had a history of good credit.

What credit score do boat lenders use?

With this lender, a credit score of 700 or higher is preferred, especially if you want to be eligible for the lowest published rates. Most of the time, you’ll need to keep your loan-to-value (LTV) ratio at 85% or lower, and depending on the loan amount, a down payment of 10% to 30% is required.