Tip for OFWs: How to Avoid Loan Sharks
Loan sharks are illegal financing companies that usually take advantage of people in desperate need of money that they would agree to sky-high interest rates.
If you are Filipino looking for resources to be able to finance the fees you need to work abroad, be sure to take these precautionary measures to avoid loan sharks:
Compare first the interest rates of different lenders so you can choose which is more practical to you. You should not also be afraid to ask question for the clarifications of the terms and conditions of your loan.
You may also ask for a written contract of the loan from lenders to have evidence of your agreement. The contract should specify the duration of the payment, the mode of payment, the consequences of failure to pay at the right time and the interest rate of the loaned amount. But make sure that you understand all your obligations before signing the loan contract.
How to Deal with Loan Sharks
Debtors have a responsibility to pay their loans but one’s consumer rights do not disappear when one is unable to pay the loan immediately. Bear in mind that Philippine law prohibits collection agencies from harassing or threatening individuals because of their unpaid loans.
Let the collection agencies or loan sharks know that you are aware of your rights so they will think twice about their illegal tactics. Do not let them intimidate you for an amount. Do not give them the authority to shake you because of the loan. It may be your responsibility to pay, but this doesn’t give them the right to threaten or harass you and your family once you fail to comply with your side of the agreement.
If you and your family’s safety and well-being are already severely affected, you can seek the help of authorities to intervene.