$300,000 payday loan loan scam hit U.S. coast
Cash-strapped borrowers in the U.K. are being encouraged to take out payday loans as part of a new scheme to help shore up the financial health of the country’s struggling economy.
The scam has hit the U, U.A.E. and Australia in the past two years, and a new batch of fraudsters are exploiting the latest trends to prey on vulnerable borrowers.
The scheme is known as the “payday loan shark,” and it’s a popular tactic among unscrupulous lenders looking to make a quick buck.
The tactic involves offering a small sum of money to a prospective borrower in exchange for signing up for a payday loan, often with an introductory rate that can vary wildly.
Many borrowers agree to take the loan if they pay it back within two years.
When the loan is paid back, the lender gets a percentage of the payment, which can be a whopping 20 percent.
The lenders then get the remaining portion of the loan, plus interest, which are often around 15 percent.
According to The Guardian, the new scheme is attracting more and more attention.
The “payment shark” scam is now on the rise.
“Payday loan sharks” have been known to offer up to $300 a month for a loan of as little as $200.
Many lenders are also targeting vulnerable borrowers, offering them loans that cost between $1,000 and $1.5 million and sometimes offer even more.
According the BBC, the scam has seen victims take out loans as low as $100.
This is the latest scam to hit the global market as consumers struggle to make ends meet.
It’s not just payday loans being scammed either, with people who are in need of emergency food, clothing and housing also turning to payday lenders to get those goods.
The Guardian reports that the new scam is particularly prevalent in the United Kingdom, where a number of other countries have seen similar schemes.
The latest wave of scams is also causing panic among borrowers.
“It’s really scary for me, for people who can’t afford a house or can’t make ends match, it’s very stressful,” a former British banker who went by the name of Peter told the BBC.
“It’s not only my family, it affects everyone, I mean it’s really devastating.
The BBC reports that it’s possible to use the payday loan shark to collect an initial loan amount, but that it only has a certain amount of interest to work with and a repayment period.
The bank can also make up to a third of the money owed in an attempt to keep the loan from being paid off.
“I have been told the loan can be as much as a million pounds and I can’t believe it, I’ve just given up. “
I’m struggling to make the money to pay the rent, food, the bills,” she said.
“I have been told the loan can be as much as a million pounds and I can’t believe it, I’ve just given up.
It’s the same thing here in the UK.”