The borrow money from guys...

Wow is loansharking legal there?

I did meet someone that was doing that back in 99. I think she was doing small loans. I didn't ask what happens to people that don't pay.

Personal loans

Yes , personal loans are legal although bound to some rules ..

I have a few small loans outstanding (some for years -some partially paid back)....interest is between 20 and 30% a few years ago even more ..All were documented by my lawywer .. obviously the lawyer will take a certain % ..A good lawyer will investigate whether the client who needs the money is trustworthy and whether he has some guarantee .. like a solar or a house or whatever ..in case the client doesn't pay any more you can pursue him after 6 months ...his property will be sold publicly and you get your money back including the interests of the last 6 months..Normally the loans has to be paid back within a yesr but with common agreement can be extended ..these are some of the basic rules ..

Up to now have always been paid correctly without any problem .. some in USD others in Pesos ..

It is very common here.
But there are different levels of this.
First what the previous poster described. There are many private persons as well as companies that offer those services, and handle it well, with lawyer etc as described.
Then there are those lending out money without taking guarantees, higher interest and can be hard on you if you do not pay back. The last part is not legal of course, but nothing will happen as the one not paying back a loan will always be considered the "bad" one..
Very few local sharks would lend to foreigners though without guarantees.

also you can find in any barrio moneylenders of small amounts of money, lets say 500-30000 pesos, at interest rate of 20-40%.... monthly, yes, monthly.
They say, 500 pesos pay 100 every 15 days!

For biger amounts, 3000-up, usually they take some like a cel, a tv,..., as a guarantee, and if the owner does not pay, he lose it all, even if it cost 2x or 4x.

when working people get the salary every two weeks, it is already spent, so just take it and pay the debs... and the interest. they can't wait 15 days and save some pesos.

ElPuma said:

also you can find in any barrio moneylenders of small amounts of money, lets say 500-30000 pesos, at interest rate of 20-40%.... monthly, yes, monthly.
They say, 500 pesos pay 100 every 15 days!

For biger amounts, 3000-up, usually they take some like a cel, a tv,..., as a guarantee, and if the owner does not pay, he lose it all, even if it cost 2x or 4x.

when working people get the salary every two weeks, it is already spent, so just take it and pay the debs... and the interest. they can't wait 15 days and save some pesos.

Click to expand...

... and it goes on and on... first to a compra venta, then to an other compra venta, and then borrow from someone else to pay back the one screaming most, buy on credit in the colmado to eat..
This is all a very common scenery.