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Why can’t I find a loan shark in Australia anymore?

July 29, 2023 by MySydneyDetour Leave a Comment

Table of Contents

  • Why can’t I find a loan shark in Australia anymore?
  • The Changing Times
  • The Law
  • The Penalties
  • The Alternatives
  • The Conclusion

Why can’t I find a loan shark in Australia anymore?

Word LOAN on step stack coins as graph up with banknotes background
Pla2na / Shutterstock

As a traveler, one of the things that you might be curious about is the availability of loan sharks in Australia. However, you might be surprised to know that it is becoming increasingly difficult to find a loan shark in the country.

The reasons behind this are multifaceted and complex. In this article, we will explore why you can’t find a loan shark in Australia anymore.

The Changing Times

Female giving money banknotes for a payment
Akin Ozcan / Shutterstock

Gone are the days when loan sharks were easily available in Australia. The country has undergone significant changes, and the laws have become stricter.

The government has been cracking down on loan sharks, making it harder for them to operate. The high cost of illegal firearms, cleaning up the police, and free healthcare have all contributed to the downfall of loan sharks.

The Law

Loan sharks are illegal in Australia, and the government has been taking measures to ensure that they are eradicated. The government has passed several laws that make it difficult for loan sharks to operate. These laws include the National Consumer Credit Protection Act, which aims to protect consumers from predatory lending practices. The act requires lenders to be licensed and to comply with responsible lending obligations.

The Penalties

Any decent loan shark program requires a substantial penalty. Traditionally, knee-capping with a small capacity pistol worked well. Quick, easy, and cheap. However, these practices are illegal and carry severe penalties. The penalties for loan sharking in Australia are harsh, and they include lengthy prison sentences and hefty fines. This has made loan sharking an unattractive business for those who might have been considering it.

The Alternatives

Portrait of smiling woman sitting at desk, using laptop and writing in notebook
Prostock-studio / Shutterstock

The government has made it easier for people to access legitimate financial services. There are now more options available for people who need to borrow money, including credit unions, banks, and other financial institutions. These institutions are regulated and offer fair and transparent lending practices. They also provide a range of financial products that cater to different needs.

The Conclusion

In conclusion, loan sharking is becoming a thing of the past in Australia. The government has taken measures to eradicate this illegal practice, and the penalties for loan sharking are severe. Moreover, there are now more options available for people who need to borrow money, making loan sharking an unattractive business. As a traveler, it is always important to be aware of the laws and regulations of the country you are visiting.

Related Resources:

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  • What are the cheapest areas to live in Sydney’s Eastern Suburbs?

Filed Under: Sydney Life & Culture

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