List of Illegal Online Lending Apps Philippines (2024) fake Loan Shark

Are you struggling to find a list of illegal online lending apps Philippines 2024 to avoid harassment victims? Be aware of these apps that are preying on unsuspecting borrowers.

They often charge exorbitant fees and interest rates, and can even result in identity theft.

Stay safe and avoid these illegal lenders by checking out our list of recommended online lenders at retailasiaonline.com.

We will also give you some tips on how to spot and avoid these predatory lenders.

Let’s dive in!

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Summary of illegal online lending apps Philippines

✅ List of illegal online lending apps Philippines gcash	⭐1. CashWill, 2. PesoBee, 3. RushLoan, 4. SkyMart, 5. SpendCash, 6. Tapa, 7. WithU, 8. CashJeep, 9. Pesopop, Lemon Loan
✅ Guide to	⭐ Know the legality of illegal online lending apps
✅ Interest Rate	⭐ 0.2% – 1% per day
✅ Age	⭐ 18 – 70 years old
✅ Pros	⭐ Fast approval gcash
✅ Cons	⭐ Debt collectors harassment
✅ Evaluate the effectiveness	⭐ Bad
✅ Bad dept	⭐ Allow

List of Illegal Online Lending Apps Philippines 2024

Below is the list of  illegal online lending apps Philippines in 2024:

No.	Name’s of lending apps
1	Cashwill
2	Pesobee
3	Rushloan
4	Skymart
5	Spend cash
6	Tapa
7	WithU
8	Cashjeep
9	Pesopop
10	Lemon loan
11	Microloan

#1. CashWill –  Illegal online lending apps Philippines

CashWill is one of the notorious illegal online lending apps in the Philippines.

It preys on people’s financial difficulties and charges exorbitant interest rates.

People who borrow money often get stuck in a never-ending circle of debt.

Pros: 

• Quick approval process
• Minimal documentation

Cons: 

• Exorbitant interest rates
• Hidden fees
• Aggressive debt collection

Overall Score: 2/10

#2. PesoBee – Illegal instant loan app

PesoBee, posing as an illegal instant loan app, has managed to deceive many individuals seeking quick financial relief.

However, it employs predatory lending practices, trapping borrowers in high-interest loans and hidden fees.

Pros: 

• Fast loan disbursal
• User-friendly interface

Cons: 

• High interest rates
• Unclear terms and conditions
• Unauthorized data sharing

Overall Score: 3/10

#3. RushLoan – Payday loan illegal

Promising easy payday loan illegal, RushLoan lures desperate borrowers into its trap.

The app’s astronomical interest rates and short repayment terms can push borrowers into even deeper financial distress.

Pros: 

• Instant cash
• No credit check

Cons: 

• Astronomical interest rates
• Short repayment windows
• Lack of transparency

Overall Score: 1/10

#4. SkyMart – Illegal money lending

SkyMart is an illegal money lending which exploits the financial vulnerabilities of individuals by offering loans with hidden charges and exorbitant interest rates.

Borrowers often struggle to repay and end up paying much more than they borrowed.

Pros: 

• Easy accessibility
• No collateral required

Cons: 

• Predatory lending practices
• Harassment of borrowers
• Misleading advertisements

Overall Score: 2/10

#5. SpendCash – Loan shark illegal Philippines

SpendCash operates as a loan shark illegal, targeting desperate borrowers who have no other alternatives.

It enforces extortionate interest rates and uses aggressive tactics to recover funds, perpetuating a cycle of debt.

Pros: 

• Minimal eligibility criteria
• Quick application process

Cons: 

• Unreasonably high interest rates
• Aggressive recovery methods

Overall Score: 2/10

#6. Tapa – Illegal loan sharks Philippines

Tapa represents one of the illegal loan sharks Philippines, employing intimidation tactics and resorting to harassment when borrowers fail to meet their demands.

This illegal practice can have severe emotional and financial consequences.

Pros:

• None

Cons: 

• Unreasonably high interest rates
• Harassment
• Complete disregard for lending regulations.

Overall Score: 0.5/10

#7. WithU – Illegal lending practices in the Philippines

WithU’s illegal lending practices in the Philippines are far from ethical.

It engages in data privacy breaches, extracting personal information from borrowers’ devices without consent.

This jeopardizes borrowers’ security and privacy.

Pros:

• Instant approval
• Various loan options

Cons: 

• Hidden charges
• Unauthorized use of personal data

Overall Score: 3/10

#8. CashJeep – Illegal online loan apps Philippines

CashJeep is another name on the list of illegal online loan apps Philippines.

It draws borrowers in with easy application processes but entraps them with sky-high interest rates and aggressive collection methods.

Pros: 

• Fast loan approval
• Convenience

Cons: 

• Skyrocketing interest rates
• Inadequate customer support

Overall Score: 2/10

#9. Pesopop – List of illegal loan apps Philippines 2024 gcash

Pesopop remains list of illegal loan apps Philippines exploiting the goodwill associated with its name to mask its predatory lending practices.

It targets vulnerable individuals and forces them into oppressive loan terms.

Pros:

• Quick loan processing
• No paperwork

Cons: 

• Unregulated lending
• Lack of borrower education
• Perpetual debt cycle

Overall Score: 2/10

#10. Lemon Loan – Online loan app illegal

Lemon Loan’s online loan app illegal Philippines which makes it appealing to those seeking quick loans.

However, its hidden charges, excessive interest rates, and unscrupulous tactics reveal its true nature.

Pros: 

• User-friendly app
• Quick loan turnaround

Cons: 

• Excessive interest rates
• Aggressive collection practices

Overall Score: 2/10

What are illegal online lending apps?

List of illegal online lending apps is record of applications offering loans without proper authorization or licensing from the appropriate financial regulatory authorities. These apps operate outside the legal framework, disregarding borrower protection laws and lending regulations. They often engage in unethical practices, including charging exorbitant interest rates, hidden fees, or misuse of personal information.

The harmful effects of illegal loan apps list Philippines

There are many harmful effects of illegal loan apps list Philippines, which include:

• High interest rates and fees: Not support 0 interest loan, Illegal loan apps often charge very high interest rates and fees, which can make it difficult for borrowers to repay their loans. This can lead to borrowers falling into debt traps.
• Debt collectors harassment: Illegal loan apps often use aggressive debt collection practices, such as calling borrowers at all hours of the day and night, sending threatening text messages, and even visiting borrowers’ homes. This can be very stressful and even dangerous for borrowers.
• Data privacy violations: Illegal loan apps often collect borrowers’ personal data, such as their contact information, financial information, and ID scans. This data can be used to commit identity theft or other crimes.
• Legal risks: Borrowing from an illegal loan app is illegal in the Philippines. Borrowers who default on loans from illegal loan apps may be subject to criminal charges.

Illegal online lending apps Philippines interest rate

The interest rates charged by the list of illegal online lending apps Philippines are typically much higher than the legal limits set by the government. In the Philippines, for example, the maximum nominal interest rate for unsecured loans is 6% per month, or about 0.2% per day.

However, these apps have been known to charge interest rates of up to 30% per month, or about 1% per day. This means that a borrower who takes out a P10,000 loan at an interest rate of 30% per month would have to pay P3,000 in interest just for the first month.

Loan App	Interest Rate (per day)
CashWill	0.5%
PesoBee	0.6%
RushLoan	0.65%
SkyMart	0.45%
SpendCash	0.52%
Tapa	0.75%
WithU	0.5%
Cash8	0.6%
JuanHand	12% – 20% per month
Lemon Loan	0.6%-0.8%

Source: Refer to bsp.gov.ph reporting and research.

What is an example of an illegal loan Philippines?

An example of illegal money lending is a loan offered under predatory lending practices. Predatory lenders manipulate borrowers, often those in vulnerable financial situations, by imposing exorbitant interest rates, hidden fees, and unfavorable terms.

Loan sharks Philippines, another form of illegal lending, provide loans with extraordinarily high interest rates and might resort to threats or violence for debt collection.

Additionally, loans extended with fraudulent intent, involving illegal contract clauses, or not adhering to lending regulations also qualify as illegal loans.

These practices violate consumer protection laws and exploit individuals in dire financial need.

It’s crucial to identify such practices and seek legitimate lending alternatives to protect oneself from financial harm.

How to know that the loan application is legal?

To ensure the legality of the list of illegal online lending apps Philippines, follow these steps:

Step #1: Check Registration

• Make sure the lender is registered loan with relevant authorities.
• Legitimate lenders are typically registered and licensed.
• You can verify this with your state’s attorney general or financial regulatory body.

Step #2: Read Reviews

• Check online reviews and customer experiences of the lender.
• This can provide insights into their legitimacy and credibility.

Step #3: Verify Credentials

• Run a Google search to see if the company is registered with relevant financial regulatory bodies, such as the RBI.
• For mobile app loan companies, ensure they are authorized to operate by verifying their credentials.

Step #4: Check State Registration

• Confirm that the lender is registered in your state.
• You can contact your state attorney general or the state’s banking/financial services department for verification.

By following these steps, you can help ensure the legitimacy of a loan application and protect yourself from potential scams or fraudulent activities.

What should we do to avoid illegal payday loan companies list

Follow these suggestions to avoid loan sharks online:

• Before you ask for a loan, make sure the lender is licensed. You can do this by calling or checking the website of your state’s regulatory agency.
• Compare the interest rates and fees of different lenders and choose the one with the lowest total cost. Avoid lenders who have hidden fees, rollover fees, or prepayment fines.
• Read the loan agreement carefully and make sure you understand it. If you have doubts or worries, ask questions.
• Make sure you’re only taking out a loan that you can comfortably repay on time. Don’t get multiple loans or lengthen the length of your loan.
• If you can’t pay back your loan, talk to the person who gave it to you and try to work out a payback plan. Don’t ignore or stop paying your loan.
• If you think you’ve been taken advantage of by an illegal payday loan company, tell the officials and get legal help. You might be able to get your loan canceled or fight banned online loan apps list for money.

FAQs – List of illegal online lending apps Philippines

Are loan sharks illegal?

Yes, loan sharks are illegal lenders. They don’t follow the law and usually target people who need money quickly but can’t get a loan from a legal provider. These people who give money without a license charge very high interest rates and often use threats, which makes them dangerous and illegal.

Is it illegal to default on a loan?

Defaulting on a loan is not inherently illegal, but it can have serious financial consequences. Loan shark companies can take legal actions to recover the owed amount, including seizing collateral or pursuing a court judgment. It can also damage your credit score and make it harder to secure loans in the future.

Why a lender can become illegal?

A lender can become illegal if they charge excessive interest rates, harass or threaten borrowers, or operate without a license. Illegal lenders are also known as loan sharks and they often use social media or influencers to lure victims. You should avoid them and report them if you encounter them.

Who checks the legality of online loan apps?

The legality of online loan apps is overseen by various regulatory bodies, primarily the Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP). These organizations ensure that online loan providers comply with relevant laws and regulations to protect consumers from fraudulent or abusive practices.

Conclusion

We would advise borrowers to avoid the list of illegal online lending apps Philippines 2024 and instead seek loans from legitimate lending institutions.

There are many legitimate lending institutions that offer loans at reasonable interest rates and with transparent terms and conditions.

Borrowers should always do their research before taking out a loan to ensure that they are getting a good deal.

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