These guys obviously operate outside of, or at the very least, skirting the bounds of, the law. Yes, it was stupid of the family to borrow from them, if for nothing else than appearance alone, lol. However, their tactics go beyond even what the most 'legit' loan sharking groups (consider payday advance companies) would utilize; they're acting like the Yakuza here. What the family should have done is researched to see if the contracted interest rate was even legally binding; they could get the police involved this way. The story wouldn't be as exciting if anyone was intuitive though.