Loan sharks have been as old as the people who have been in the need of some fast money. Hence, history is full of some famous loan sharks. Even though it started as people who just wanted some fast cash due to their bad credit scores, it turned out to be a profitable business for some payday lenders as the market was huge. But we will talk more about that later. In this blog, we are going to talk about some famous loan sharks of today and the past. So let’s begin to get the loan below.
How it all started? Famous loan sharks
My basic question to the reader is how a certain thing usually gets started or gets invented? The answer is pretty simple and that is the need for the thing. It is a famous saying that “Necessity is the mother of inventions”. This holds for everything.
Due to the financial crisis, the banks turned their back on the poverty struck public. They stopped lending money to people having bad credit scores. The banks refused to lend money to people who they thought couldn’t pay them back. Banks did whatever they seem profitable for their own pockets.
According to a 2019 Federal Reserve Board study, almost 4 in 10 Americans today would have difficulty covering an emergency expense of $400.
Due to these circumstances, there was a surge in people who started loan sharking. Whoever wanted fast cash, could borrow money from these lenders with the promise of paying them back within one to two weeks. But these were illegal lenders. These illegal lenders even did public shaming or violence to get their money back.
Sometimes, the boss was lending money and used the threat of firing the person from the job to get the money back. And since the beginning, the borrowers have never stopped borrowing money. This is because it has never been illegal to borrow money from anyone!
Their solution being payday lenders or credit unions. The payday lenders took a one-time fee of about 20-30 dollars while the credit unions are not-for-profit organizations.
Why do people need loan sharks?
There are many advantages that a large group of people considers a valid trade-off when they consider borrowing money from loan sharks. First, there are no legal repercussions of borrowing money from these people. So they keep going to them.
The banks also have a minimum amount that they lend, which might be more than a borrower needs. Even getting that is not a piece of cake. A lot of times people need fast cash with a payback time of seven to fourteen days. There is only just a little amount of fee you pay to the lender. It is just too convenient for the borrower.
Some licensed loan sharks of today
Today, there is a surge in the licensed loan sharks. These companies operate on a license and their annual interest rates go as high as 700%. But this figure becomes irrelevant when the borrower is only going to get the money from a few weeks and is going to pay a small profit to the lender. And this is the very reason why critiques say that abolishing payday lenders and these licensed loan sharks will only create problems in the long run
Anyways, let’s get down to business and talk about some of the licensed companies that provide small sums of money to the public without strict credit check criteria.
This is one of the best online marketplaces out there that provide loans for short terms. You can get money up to 2500$. Not only this, but you can get the loans within 24 hours. If this isn’t what you want in a time of need, I don’t know what is it. And trust is the very reason this company has more than two million customers.
Okay, so this company is also one of the trusted ones out there that provide very friendly terms even for people with bad credit. It provides loans ranging from 500 to 10000 dollars. And the repayment window is pretty friendly too if you are living a paycheque-to paycheque life. You can return the loans from a three-month window to a six years’ window.
So if you want a small amount of money ranging from a hundred bucks to a thousand dollars, this is where you go. With more than 75 thousand customers since 1998, CashAdvance has a large network of lenders that value nothing but higher customer service. The other terms and conditions vary from case to case basis as each person has a different capacity.
Some famous loan sharks of the past
Obviously, private lending has been an illegal activity since its inception. Even though the black markets never had any monopoly over illegal lending of the money, it has had its fair share of criminal network Involvement in the past. In this section of the blog, we are going to discuss some famous loan sharks in history. It may also be noted that not all illegal loan sharks are related to the criminal world
Contributing to the stereotyping of looks of loan sharks wearing fedora hats and smoking cigars, Salerno, famously known as Fat Tony, was the Genovese family’s underboss. He conducted a lot of the businesses of the syndicate, including loan sharking. According to some reports, he made more than 1 million dollars through his loan shark networks.
Anthony was the enforcer for the Chicago Outfit. He used to employ violence as a method to get his money back from the borrowers. If you didn’t pay him back, it didn’t mean a notice like a bank or some empty threat. It used to mean a broken arm for sure.
Frank Calabrese Sr.
Frank ran the loan sharking networks for the Chicago Outfit. He was famously known as Frank Breeze. He used to tell his goons to use any method necessary to get their money back. Borrowers used to lose anything they had of value so that Frank could get the money back. That often led to borrowers losing their car, home, belongings.
He was the boss of the Colombo family. Gary Lang used any methods that he could use to prove himself. He was a youngster and he had to be ruthless if he was going to run a loan sharking business among all the illegal activities he was doing. He proved himself in the underworld and quickly rose through the ranks. Currently, he is in prison serving a life sentence.
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