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Good Credit, Usurious Loans

May 07,2001
The Financial Supervisory Service said Sunday that 165 out of the 396 people that reported problems with private lenders to the service had normal credit ratings.

Agency officials said they believe a reluctance by banks and merchant banks to extend even good loans and a lack of knowledge about how to obtain loans from financial institutions were the main reasons that persons with good credit ratings turned to private lenders. The financial watchdog agency has also asked credit information companies to stop noting private loans on their records. In some cases, banks have automatically rejected loan applicants who turned to private lenders.



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