{"id":866490,"date":"2020-07-07T11:05:35","date_gmt":"2020-07-07T15:05:35","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=866490"},"modified":"2026-01-26T10:44:20","modified_gmt":"2026-01-26T15:44:20","slug":"predatory-lending-loan-sharks","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/payday-loans\/predatory-lending-loan-sharks","title":{"rendered":"Predatory lending and loan sharks: What are they and where else can you apply?"},"content":{"rendered":"

Borrowing from a loan shark might feel like your only option when you\u2019re in a pinch and need cash fast. These illegal lenders have few requirements and can seem easier than going to a legit lender. But there are better alternatives<\/a> out there.<\/p>

What is loan sharking?<\/h3>

Loan sharking is deemed a criminal offence in Canada if the rate exceeds 35% APR. This rule does not apply to payday loans as those are regulated differently.<\/p>

Loan sharks may be attractive to some borrowers because they\u2019re fast, informal and discreet. However, there are safer options to explore<\/a>.<\/p>

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\nMust read: <\/span>Guaranteed approval loans guide<\/a>\n<\/div>\n<\/article>

Predatory lending<\/h3>

Predatory lending is any unethical tactic a lender or loan shark uses to trick a borrower into unfair or illegal terms. Borrowers with bad credit or low income are often targeted most. In other words, people who might not be able to qualify for a loan from a bank or credit union. But even the most creditworthy customers can fall victim if they aren\u2019t careful.<\/p>

What to watch out for with predatory lenders and loan sharks<\/h3>

Here are some of the common ways disreputable lenders take advantage of borrowers:<\/p>