Asked by Moody on 28-07-2020 07:24:35
Question posted in the General Law category relating to Gauteng
I wanted to know how to deal with such my friend hasbeen taking loan from private guy for almost 2 yrs and have been paying with interest of 50% Loan shark. During covid 19 he nw says guy put up to 70% interest monthly and he failing to pay no paper work nothing now person has gone around say he been scammed and making like it a criminal case could you help by advising legally what best way forward.
Answer to the Question
Posted by Att. Patrick on 31-07-2020 22:34:45
I see that you haven't made a payment for the question, but I'm going to assist you a little. If you want to ask a follow-up question, please make the required payment.
It sounds like this loan shark is not a registered credit provider, which means that he is not allowed loaning money like that and charging interest.
Your friend should tell the loan shark that what he is doing is illegal, and that he will not pay anymore, and that the loan shark can go to court to sue him if he wants.
Your friend will defend the claim on the basis that the loan is illegal and unlawful and is therefore void.
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