Loan Sharks In Canada – How It All Goes Down

loansharksincanada1 Loan Sharks In Canada   How It All Goes DownSo Andrew lives in Canada and he inquired in regards to finding loan sharks in Canada, and his reason for needing a loan makes sense if you look at the data below. He has some outstanding bills that have to be met, and even down to the basics, such as heating bills are way behind.

Unfortunately, he is going about this the wrong way. He is trying to get a loan shark to lend him the money he thinks he needs when all they have to offer is more stress, danger, and an icky feeling.

His reason for wanting to use a loan shark is way off the register into the stupid zone.

If you are living in one of the major cities in Canada (in any Province) and you are actively seeking out a loan shark, you need to just forget about it – no one needs the money that bad. It’s more than risky – it’s plain old fashioned dumb.

Loan sharking is quite illegal in Canada and it takes on a few different forms. Here are two examples of loan sharking that take place in Canada.

Loan Sharks In Canada – Two Examples

loansharksincanada3 Loan Sharks In Canada   How It All Goes Down1) The Pawn Shop Loan Shark In Canada – the pawn shop loan shark in Canada is one that is associated with, or IS a pawn shop business owner who offers “back room” lending for cash, and at least 5%-10% interest daily. So if you borrowed money from a loan shark in Vancouver B.C, Calgary AB, Toronto Ontario, or Montreal Quebec, the deal goes down like this.

You know someone, or of someone who puts you in touch with a pawn shop operator, and you meet them in their store with some random item you are pretending to pawn. You have been cleared by one of the loan shark’s “associates”, and you are taken to a private place to discuss the loan and terms.

The APR is always high enough to be wildly illegal (sky rocketing over the legal usury limits in ANY Province), and with pawn shops you are paying interest on a daily basis. If you don’t pay up your debt on time you are intimidated, bullied, and perhaps even physically harmed in some way. If you default on what you owe the pawn shop loan shark, it can (and does) lead to violence, extortion, kidnapping, breaking and entering, vehicle theft, and in some cases murder (yes, you read that correctly – so now you know that you are playing with fire).

The effective APR (Annual Percentage Rate) on a typical loan shark loan is quite astounding. At the low end it’s 5% per day, so let’s do the math. 5% x 365 (days in the year) = 1825% APR. Remember that an average mortgage these days carries and APR of 4-6%. You get the picture here loud and clear?

loansharksincanada2 Loan Sharks In Canada   How It All Goes Down2) The Casino Loan Shark In Canada – the casino loan shark moves in a slighty different manner. These loan sharks “hang around” casinos looking for desperate gamblers who have not quite found a way to understand math. The house always wins in the end. If you stay on the tables long enough, the Casino ALWAYS wins. It’s an ancient fact.

Most of the Casinos in Canada are owned, and operated by First Nations groups and associations. They are playing “on the up and up”, but the loan sharks use their venues to apply their dirty trade. They lurk around the Casino bars, ATMs, roulette tables, black-jack tables, and craps tables, just looking for someone who is obviously hooked and addicted to gambling (even if it’s just a temporary addiction and loss of reasoning power).

Casino loan sharks in Canada (and I’m guessing anywhere in the world for that matter) 90% of time are giving their loans to regular gamblers whom they already know, and are familiar with. They lend money to rubes at rates starting at 20% interest daily and work up even higher in some cases. The same problem is in play, as in the example above, when it comes to not paying the sharks back.

You can end up having a family member get kidnapped for the exchange of the loan shark’s so-called principal and “vig” (interest), or you can be pulling out of your back alley garage and get a couple of visitors who send you out in an ambulance to the hospital for reconstructive surgery on your face.

Here is a link to a story about loan sharks operating in Vancouver. Sound familiar? This is the hard cold reality of loan sharking, and underground illegal lending. I hope our message is coming through loud and clear. Run for the hills. You don’t need the money that bad….do you??

Now the effective APR on this loan shark scenario is calculated as such. 20% daily x 365 = 7300% APR. So you thought that payday loan companies were bad. The people who deal with loan sharks are almost always people who don’t have any sources of credit left. No Canadian banks, Credit Unions (conventional lenders) will do business with them, and even the payday lenders won’t anymore because they have defaulted on those loans too.

So in order of consquence and APR levels, this is the order of good debt to bad debt, starting with good debt and going down, and all of these range depending on the economic reality of the time;

  1. The Real Estate Mortgage (effective APR – 3%-10%)
  2. The HELOC (effective APR 4%-11%)
  3. The Bank Vehicle Loan (effective APR 7%-9%)
  4. The Credit Cards (effective APR 18%-20%)

Below was the submission we got online. His actual choice of words were, “I’m looking for an online loan shark in Canada”. We are happy to report that we talked him out of it, and he didn’t go forward.

The Applicant’s  Online Submission

BFC Customer App = Cash Required: $5,000, Payment You Can Afford Per Month: $700, TransUnion Score: 502, Submit Your DTI: 0.4, App Location: Viking, Applicant’s Country: Canada, Reason For Loan: Heating Bill, Mortgage, and Debts, Period of Loan: 93 days, Earning Each Month: $3,600, Period With Employment: 2 years, Your Employment Field: Coffee Shop Attendant, Recent Employer Payment: $3,600

Requirement: Dire Situation, CC Debt Level: $7,000, Personal Loan Debt: $45,000, Car/Truck Model: Toyota Voxy, Debt Still Owed: $9,370, Automobile Year: 1982

Borrower Data = First Name Only Please: Andrew, Age: 25 years, Marital Status: Single, Height: 5 ft 4 1/2 in, Weight: 169 pounds, Grade 12 Graduate, Eye Color: Slate Gray, Hair Color: Blond, Pet(s): Asian Cat, Favorite Novel: The Child in Time—Author:Ian McEwan, Favorite TV Show: Up All Night, Favorite Food: Salmon Cedar Plank, Favorite Musical Act: Jamelia

End of Profile and Loan Application Data

Author Tip: Avoid loan sharks all together, whether you are in Canada or not. Illegal lending, and dangerous to even mess with.

Do You Need A Personal Loan?

Legitimate lenders use BFC to find borrowers they can lend money to. We screen them all to make sure they are legal and trustworthy. All fields must be filled out, or the pre-app will not be processed. Thanks for your understanding. NOTE: Lenders generally DO NOT RESPOND to one sentence requests for a loan. They take action if the borrower provides details regarding why they need the money, their Province location, income, outstanding debts in detail. The more in depth your information, the more lenders respond.

Use the loan application below to start the process. Detail your income and purpose of loan please - lenders do not respond to applicants who don't provide it. Thanks for using BFC!

12 Loan Requests

  1. Ondrej applied for the following loan:

    Loan: $5,000.00

    Speed: A.S.A.P (the faster the better ...)

    Credit: very...very...poor next to no good in Bankruptcy

    Location: Lower Sackville Halifax Novia Scotia Canada

    Income: military pay $4986.00 and still working for the Canadian armed forces...28years in so far...


    due to the fact of all the rain we had here in Halifax…we are in a desperate situation were the weeping tiles outside around the house needs to be replaced, and we also need to change the carpet in the basement, due to water damage, along with a new sub-pump…the home insurance will not cover us, because they said that this was done because of a heavy rain fall, act of nature and nothing to due with inside of the home ex; a pipe bursting or sewage backing up…so therefore it is our responsibility to repair it…Thanks!!!

  2. James applied for the following loan:

    Loan: $5000

    Speed: NOW

    Credit: 570

    Location: Toronto, ON, Canada

    Income: I make $3867/month, after taxes and other deductions (health plan) - $1493 twice a month ($2986 net)


    Escape payday loans ASAP – want to get moving on and pay off my other credit cards after I escape this spiral

  3. Brooke applied for the following loan:

    Loan: 7000.00

    Speed: ASAP

    Credit: 502

    Location: New Hamburg, Ontario

    Income: I take home 1050.00 bi weekly, paid direct deposit into my account ever other Friday. I also receive 950.00 in child support each month deposited into my account on the 1st of each month.


    I have just recently started going through a divorce. My soon to be ex husband cleaned out our savings account and I have also just found out that he has taken out a number of things in my name and they are listed against my credit. I need money for rent and to pay my bills. I will be receivng my seatlemtn in my divorece in the next 60 days and will fully pay off this loan at that time. I have never had a credit card as I do not like to have to borrow money. I am a hard working person that holds a steady job and just needs someone that is willing to help me out.

  4. Natori applied for the following loan:

    Loan: 11,000

    Speed: ASAP

    Credit: mid 500s

    Location: Ajax, ON, Canada

    Income: I am a freelance adult entertainer. I make anywhere from 1500 - 2000 every two weeks depending on the amount of clients I am booked with for that month. The loan will be paid back within 1 year = 12 months.


    I would like to invest in cosmetic breasy surgery to enhance my earning potential as an exotic dancer. I am looking for a good faith loan in the amount of 11,000 to get my surgery done by a good and qualified surgeon in Toronto, Canada. I am open to making affordable monthly payments for 1 year until my debt is paid in full. Please do not contact me with upfront fee requirement or ridiculous interest rates.

  5. cindy applied for the following loan:

    Loan: 20 billion

    Speed: asap

    Credit: poor

    Location: calgary alberta canada

    Income: 4000 a month full time


    too buy a pro hockey team in Canada or the usa and too buy other income business

  6. mouse applied for the following loan:

    Loan: 100 million

    Speed: asap

    Credit: good

    Location: calgary alberta

    Income: 40,000.00 month income if I get this double that


    to expand business

  7. Cheryl applied for the following loan:

    Loan: 4500.00

    Speed: Immediately

    Credit: Not sure

    Location: Regina, Sk Canada

    Income: 2600.00 monthy


    Consolidate loans into one manageable payment. Money borrowed from friends and family that are due.

  8. diane applied for the following loan:

    Loan: 4500.00

    Speed: asap

    Credit: poor

    Location: Regina, Sk Canada

    Income: 2600.00/salary


    Consolidate debt to pay credit card, past due mortgage pmts and to pay back money borrowed from friend and family member

  9. leslie applied for the following loan:

    Loan: 22500

    Speed: ASAP

    Credit: poor

    Location: canada

    Income: My earnings come from 2 sources, After business school I began running my own marketing business doing product development artist management and promotions which I have been doing for about 12 years providing promotional services for clubs and other business in Toronto. My reputation as a street promoter keeps my clients coming back to do business with me. At present my marketing business brings me about $200-$300 per week. I also earn a living as a second term local 27 carpenter’s apprentice; right now I’m working part-time about 4 or5 days a week earning about $400-$500 per week with Labour Ready Temporary Services. I can repay my loan by giving $700-$800 a month and use the rest of my time to concentrate on expanding my marketing business. I have a couple new products which I have invented; such as my own line of oatmeal cookies and my graphic comic this is why I ‘m asking for a Loan.


    I need the loan to expand my business and get my new products that I created on the market. I need the money to pay for legal fees to prepare my documents, non disclosure agreement, articles of incorporation trademarks, copyrights etc, I also need to build my studio, website (which is under construction ( and my contact management system. I also need to buy products for developing my comic and my line of oatmeal cookies for which I need to do a test run. Then the next step is to get them into the stores I already have frescho interested in having my cookies in their stores. My comic is in the colouring stage and will be ready for printing in about a month.Getting these products on the market opens the door for my other products and attracts more clients

  10. Scott applied for the following loan:

    Loan: $2000

    Speed: September 1

    Credit: fair

    Location: Vancouver< BC Canada

    Income: Net approx. $$3200 employed full time


    To pay off a debt

  11. chris applied for the following loan:

    Loan: 20000

    Speed: asap

    Credit: ok

    Location: Calgary alberta canada

    Income: I make about 3300 amonth after taxes


    I need a fresh start and I have made alot of stupid choices got some loans at high intrest rates fell behind on them. Bought a car with a 34 percent intrest rate. these bill are sinking me. Just need help

  12. Anonymous applied for the following loan:

    Loan: 150,000 USD

    Speed: Before September 1

    Credit: 589

    Location: Grand Bay - Westfield, NB CANADA

    Income: Earn $1900 with my work for a language school in France along with my CTB. Have student loan help averaging about $1000 monthly.