Loan Sharks, Excessive Interest, Aggressive Collection — Know Your Rights

Charging interest above the rate the law allows is not something the law recognises. The excess may be unenforceable, and in some cases lending above the permitted rate may itself be an offence. A borrower therefore does not always have to pay what is demanded — it is worth having a lawyer check first.

Collection that threatens, uses violence, shames you in front of others, calls or visits at unreasonable hours, or discloses your debt to third parties may be unlawful and carry penalties. If you are being pursued that way, you can gather evidence and act on it.

Keep everything: the agreement or receipts, the messages sent to you, transfer records, and a note of each collection attempt. The more precisely you record the dates, times and methods, the more usable it is.

Do not sign anything or accept a figure that is not correct before it has been checked. Consult a lawyer to review the interest and whether the debt is properly calculated, and to look at the options for negotiating or contesting it before you bind yourself.

More than most people think — both the right not to be charged interest above what the law recognises, and the right not to be pursued by unlawful collection methods. Knowing both changes the position from being cornered to being able to negotiate.