system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5 why is loan sharking illegal but pay day loans which can have an interest rate of over 350% are legal (in the US).
gpt
Because the pay day loans still operate within the parameters of the law, such as paying taxes on the loans, paying for a business license and not physically harming the people who owe them money, while sharks purposefully choose to engage in that illegal activity by shirking tax and licensing responsibilities and physically harming their clients who do not pay up.