Think twice when borrowing money from these loan sharks as there is a high price to pay. It is not worth the hassle and trouble for a temporary respite. I believe it is better to plan and spend prudently according to our means.
– Datuk Seri Johny Ch’ng Ewe Gee, Malaysian Crime Prevention Foundation vice-chairman
Action by enforcement personnel of the Kuching South City Council (MBKS) to tear down or destroy notices or so-called advertisements pasted by licensed moneylending companies on posts and trees in its area of jurisdiction some time ago should continue.
In a way or two it did help to contain, if not to solve, the act of borrowing money from these moneylenders. After all, those who need to borrow for reasons known to themselves only, have no other way to get the extra cash needed.
A friend of mine who is very familiar with the situation and who has confided in me about his predicament with the moneylending sorority pointed out that these moneylending companies are not much different from the unlicensed Ah Long (loan sharks). Moneylenders charge very high interest for the money borrowed from them, ranging from eight to 20 per cent, the man told me. This was confirmed by a senior officer from one of the enforcement agencies who is my cousin.
From Kota Samarahan to Tenth Mile, from Bau to Serian, from Tanjung Datu to Lawas, these moneylenders thrive steadily on the high interests they charge on their clients, who include government servants, company workers, pensioners and other salaried members of the public who are required to leave their ATM cards or bank book with the moneylenders.
They use the cards or the bank book to withdraw their clients’ salaries at the end of the month and deduct the amount owed plus interest. So, if you owe them RM1,000 they will deduct the interest accordingly – for example, if the interest is 10 per cent, RM100 is deducted. They will let the borrower get the balance. This is done every month.
That friend of mine owes quite a huge amount and is paying monthly almost two-thirds of his salary to cover his loan from a moneylending company in Seventh Mile. He is looking forward to January next year to finish paying that loan. I wish him well.
These moneylenders make it very easy for one to borrow from them. They make use of their clients to introduce their business to friends and relatives, encouraging these clients with the award of a ‘commission’ of an undisclosed amount. So, it is a case of friends introducing friends; sounds good but actually, this is helping the company to make more money and creating more miseries for your friends.
In the beginning, especially when a loan from the moneylender is approved, you would be happy but after suffering from a shortage of funds even on payday, then there comes the realisation that involvement in the moneylending fraternity is a mistake. Lack of funds means the client has to top up the loan, thereby adding further misery.
There have been cases of the moneylenders’ muscles going around looking for errant borrowers, including going to their workplaces; even going to school, if the borrower is a teacher or school staff. This kind of activity has caused so much stress and trauma for the borrowers as some moneylending firms even employ gangsters or those who look like one to claim payment from borrowers; in fact to harass them.
According to that cousin of mine, they have received a few complaints on these harassments with some already being acted upon and the muscle getting arrested but in an instant getting bailed out by their bosses.
This moneylending business started mushrooming in the first decade of the new millennium and gained momentum in the second decade. MBKS did the right thing by asking its enforcement personnel to go around pulling down moneylending companies’ notices and ads. These officials should go around more often to contain the situation, including checking claims that these licensed Ah Longs are keeping bank cards and books of clients.
In fact, upon checking with the authorities, it is an offence to keep the ATM cards of others. But I guess there is no report to the police on this for the simple reason that no one dares to chase away the goose that lays the golden eggs.
“I just let it continue and remain status quo on the matter,” my friend, the client confirmed with me. I empathise with him. He has been struggling to come up with the payment monthly which has taken a real toll on him and his family.
As I see it, to most clients, getting loans from these licensed Ah Longs is creating rather than solving their problems. So, ponder well before deciding to borrow from them.
The views expressed here are those of the columnist and do not necessarily represent the views of the New Sarawak Tribune.
