I am new here and I am sure this topic has been covered before but I would like some help and advice if possible.
My wife foolishly borrowed a large amount of cash from what I suppose you would call a loan shark.There is no written contract, everything was done verbally.
As I understand there was no fixed monthly payment but the principal would be paid within 1 year.
My wife has made many cash payments, over 200 % of the original principal amount, but they still insist or more money, so now the amount due to 4 times the original principal and its never ending and just impossible to pay
They charge at 2 % per day on a compound interest rate applied once per month so this is so high.
As mentioned, no post dated checks or collateral - Now they want full payment - What can we do.
What is our legal obligation - We are OK with paying the principal and a reasonable interest rate but not excessive. We have tried to negotiate but they are not interested.
The "runner" collector is also continually making harassment and threats to even kill my wife - I am sure this must be a police offence. 20-30 text every day, we have even changed our land line number now.
Problem also is we have no contact name or location of the "Lender" so how can we file any charges.
I was thinking of setting up with the police a sting operation or something like that when we meet the collector but don't know if this will work.
Please any advice help and suggestions will be appreciated.
I have warned my wife to never to this again, hope she will listen and just talk with me in advance next time.