If you’re in debt with the loan sharks, chances are you’re living your life in fear. With red paint splashed onto your property and daily threats coming in, how do the borrowers live in peace?
The Malaysian International Humanitarian Organisation (MHO) has urged authorities to use all available legal provisions to crack down on unlicensed lending activities that are increasingly daring to operate digitally. In the meantime, its secretary-general, Datuk Hishamuddin Hashim, has a reminder to the borrowers.
Stop paying money to the Ah Longs!
In a recent press conference, Hishamuddin said a campaign urging people to stop paying money to the loan sharks is being held as a step to make the public aware that victims of unlicensed loans are not unscrupulous borrowers but rather victims of fraud.
“Many are trapped by manipulation. For example, borrowing RM5,000 but only receiving RM3,500.”
“Some of them had to take new loans to cover old debts. Ultimately, they continue to drift into overlapping debts.”
Hishamuddin stressed that the public should not make any payments to unlicensed lenders because such actions violate the law and only strengthen the position of the syndicate.
“We want the people to stop paying. Fight them with the law, not with fear.”
In addition, he said that Section 29D of the Moneylenders Act allows action to be taken against Ah Long, who harasses victims at home or at work, with a prison sentence of up to three years or a fine of RM250,000.
If they spread personal information, they can be charged under the Personal Data Protection Act 2010 with a three-year prison sentence or a fine of RM500,000.
MHO wants loan sharks to be categorised as organised crime syndicates and face harsher punishments
He also suggested that the activities of Ah Long be categorised under Section 130B of the Penal Code relating to Organised Crime Syndicates because their operations are clearly planned, involve networks and are no longer individual in nature.
“It’s time for this group to be investigated as an organised crime syndicate, not just a commercial crime. They have a structure, fake accounts, debt collectors and operations managers.”
In the conference, Hishamuddin revealed that MHO has received more than 100 official complaints regarding unlicensed lending, with 15 major cases involving losses exceeding RM10 million.
He also reminded the public, especially the youth, not to get caught up in the campaign of renting out bank accounts to unknown parties that is currently going viral on social media.
What do you think of the idea of not paying the loan sharks?
