Final answer:
Finance companies that charge excessively high interest rates to high-risk customers are known as loan shark companies. These predatory lenders are distinct from legitimate finance companies that provide loans and credit services within legal interest rate boundaries.
Step-by-step explanation:
Finance companies that exploit desperate higher-risk customers by charging unfairly exorbitant interest rates are commonly referred to as loan shark companies. These entities operate outside of the traditional financial system and often engage in predatory lending practices. Such companies are not to be confused with legitimate lending institutions that may offer subprime loans, but within the regulations and interest rate limits set by usury laws. While some finance companies work with businesses to facilitate consumer credit through reputable channels, loan sharks typically prey on individuals who are unable to secure funding through these conventional means.
Legitimate finance companies might partner with industries such as automobile manufacturers and assist in simplifying the credit process for consumers, whereas loan sharks provide no such ethical service. Finance companies like Bank of America Merrill Lynch Dealer Financial Services, Chase Auto Finance, and Ford Motor Credit Company are examples of legitimate businesses that aid in providing customer credit, as opposed to loan sharks that capitalize on desperation.