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View Full Version : Loan sharks/usurers in Biliran Province, uncontrollable?



since1980
04-12-2008, 07:08 AM
Loan sharks/usurers/fivesix lenders proliferate in this province. They prey on those who are in desperate need, who just close their eyes even if the interest rates are shamefully high - from 5% to 20% per MONTH!

These sharks range from illegal foreigners (the usual Indian and the Vietnamese), greedy businessmen, corrupt government officials, etc...

These loan sharks have been known to be a factor in the high prices of goods in public markets because the vendors add on their interest costs to the retail price of their merchandise.

Should these usurers be controlled by the Provincial and Municipal governments especially now that the prices of food commodities are very high?

A_Simple_Man
04-13-2008, 06:34 AM
I hope you do not mind that I comment on how we handled this problem on Canada. About 50 or so years ago we had "Finance Companies" loaning out money at high interest rates such as you mention. The people complained and the government passed laws to make some of the Interest rates lower. Then the "Finance Companies" stopped making that kind of loan and many people could not borrow money at all.

The high interest rates were paid because of supply and demand. There was more demand for loans than there was supply. So some farmers got together and created Credit Unions. It is like a bank where farmers who have money leave it in the Credit Union for a small Interest paid to them so that the other farmers who need money can borrow from that money at fair interest rates. It works when the people who speak of this problem are willing to 'put their money where their mouth is' and risk losing their own money so their friends and neighbors can borrow at a fair Interest rate.

It takes many years but it can drive the Loan Sharks out of business. Unfortunately, even in Canada, there are getting to be more high interest loans because so many people are not honest enough to repay on time and the Credit Unions are going out of business.

I just thought you may want to know.

since1980
05-20-2008, 04:42 PM
I'm quoting here the post in the other forum of someone from the BIR Personnel Inquiry Division in response to complaints re: the BIR officer in Naval who is also involved in loansharking:


I am from BIR Personnel Inquiry Division, a unit tasked to investigate and prosecute erring BIR employees. I was referred to this site and topic by a concerned citizen.

The BIR does not condone employees who are engaged in loansharking and other illegal activities.

We encourage all individuals who have been allegedly victimized by this employee to file a formal complaint using the online form found in the link below:

http://birapps.bir.gov.ph:7777/ecomplaint/ecom_form.jsp

Keep collection letters and collection text messages (SMS) and other documents that could be useful as evidence.

We cannot act if there is no formal filing of complaint so please do use our online eComplaint system.

Thank you.