Loansharking- Bleeding a customer too much? One big customer? A few? And other questions

[Tonyd621]

Is it me or does it some guy(s) who recently got busted... they bleed a loanshark customer too much?
I mean I feel like theres a point where the customer pays the principal plus said interest or points and that's the end of it. Too me, nowadays it seems these guys have one customer they loan too and suck him for everything they have. Then the customer ends up flaking and runs to the feds. Why bleed one customer so much? When you can build a few good customers, build good reputable (word of mouth) book?
And the legality of it, why is it even illegal? Down in the south they have title pawns, personal loans, etc. You can get a cash advance on almost any credit card with a double digit interest rate.
It seems some guys can build a decent living on it.

[Bklyn21]

Is it me or does it some guy(s) who recently got busted... they bleed a loanshark customer too much?
I mean I feel like theres a point where the customer pays the principal plus said interest or points and that's the end of it. Too me, nowadays it seems these guys have one customer they loan too and suck him for everything they have. Then the customer ends up flaking and runs to the feds. Why bleed one customer so much? When you can build a few good customers, build good reputable (word of mouth) book?
And the legality of it, why is it even illegal? Down in the south they have title pawns, personal loans, etc. You can get a cash advance on almost any credit card with a double digit interest rate.
It seems some guys can build a decent living on it.

Yea , Most of these idiots bleed a guy for life , Once they take a loan it's Forever . There was a nice case of this involving Anthony Vallario brother of Big Lou where he was killing a guy in NJ on a loan and the guy finally cracked , But it's just one of many cases

[chubby]

Honestly horrible bossiness model especially these days. Every guy knows if he wants to get out from under you all he has to do is run to the feds... so you are better off being diplomatic and more businessman like if you’re a Shylock.. but you got to remember some of these guys are so fucking greedy, it’s never enough... and then there’s also the guys who are more brokester than you would expect, which leads them to bleed someone forever..

[bert]

In all the New York cases of the past 10 years, the customers took the loan, then after only a few weeks went to the FBI to report it and get out of the loan. One case involved a baker who lent the money to an old friend, who then ratted on him to get out of it. I think it was a Brooklyn case. Bleeding a guy dry is more of a non OC type thing, any smart shylock knows it is bad business.

[Wiseguy]

I'd venture to guess most loansharking for the mob involves gamblers who bet on credit, get over their head, and can't pay what they owe. So that gambling debt effectively gets turned into a loan, the bettor is put on a payment plan, and has to keep up with the weekly interest so the entire balance isn't called in.

From the mob's position, they can make a lot of money from a guy over the years if they play it right. Years ago Freselone talked about the need to not lean on a guy too hard so he doesn't run to the cops. If it was a case of most loanshark debtors now turning to law enforcement, the racket would be all but dead. And that doesn't appear to be the case in New York.

[givememysocks]

Charles tuzzo had an interesting way of collecting money from debtors, he would force them to write ten checks for each weeks vig and then cash them once a week. Seemed like a pretty smart way to streamline the shylocking process.

[Tonyd621]

Charles tuzzo had an interesting way of collecting money from debtors, he would force them to write ten checks for each weeks vig and then cash them once a week. Seemed like a pretty smart way to streamline the shylocking process.

Then after the 10 checks would presumably clear; he would then call in the principal?

[givememysocks]

Charles tuzzo had an interesting way of collecting money from debtors, he would force them to write ten checks for each weeks vig and then cash them once a week. Seemed like a pretty smart way to streamline the shylocking process.

Then after the 10 checks would presumably clear; he would then call in the principal?

I think it was just a smart way to collect the vig instead of chasing down the debtor each week. I assume after the 10 weeks he would get another 10 checks untill he could pay off the whole loan

[Targenmantarian]

When it's a gambler there's a sliding scale.

They never fully pay off their debt or loan and you never let them get too far underwater.

You eventually have to extend them new credit so they have a reason to lose more and keep paying it off.

When it's betting you aren't really losing a commodity you paid for as much as not getting 100% profit on a win.

So basically it's way better to have a guy who gets 10k owes 20k and pays you 1 to 2k a week than to loan someone 50k and Chase them down forever to make 200k off that loan. The 2k a week guy once he gets 75% back just let him bet again and knock him back on his ass. He will also win a few here and there and that will really get him stoked.

Cause they'll eventually get sick of paying you when they've spent the principal and run off or go to the cops.

But if you let them take a little more and pay you back that on top then you can keep them relatively docile.

[DonnieB]

Charles tuzzo had an interesting way of collecting money from debtors, he would force them to write ten checks for each weeks vig and then cash them once a week. Seemed like a pretty smart way to streamline the shylocking process.

Then after the 10 checks would presumably clear; he would then call in the principal?

Sounds like a knockdown loan situation, borrow $1000 payback $1300 ..$130 a week for 10 weeks

[TwoPiece]

And the legality of it, why is it even illegal? Down in the south they have title pawns, personal loans, etc. You can get a cash advance on almost any credit card with a double digit interest rate.
It seems some guys can build a decent living on it.

short answer is that this way it can be taxed, the mob isn't paying taxes on their shylocking money.

[Stroccos]

And the legality of it, why is it even illegal? Down in the south they have title pawns, personal loans, etc. You can get a cash advance on almost any credit card with a double digit interest rate.
It seems some guys can build a decent living on it.

short answer is that this way it can be taxed, the mob isn't paying taxes on their shylocking money.

the illegal part is when you threatening to break there legs for not paying

with the sentecnes the feds are handing out for loansharking and the ability to any debtor to run to the fbi its amazing anyone still pays
loansharking is dead in most parts of the country

[bert]

It is illegal because the government sets loan rates, if you charge more then the crime is Usury (Shylocking, Loansharking) When you add a threat after a borrower will not pay they add an extortion charge. Banks and credit card companies or other lenders have occasionally in the past gone over the legal rates with compounded interests and other methods.

[bert]

Usury law:

https://www.lexisnexis.com/legalnewsroo ... rest-rates

[Stroccos]

It is illegal because the government sets loan rates, if you charge more then the crime is Usury (Shylocking, Loansharking) When you add a threat after a borrower will not pay they add an extortion charge. Banks and credit card companies or other lenders have occasionally in the past gone over the legal rates with compounded interests and other methods.

The feds wire u up and try to get the lender to threanten u and then there done