Licensed moneylending companies in Malaysia are charging high interest rates and resorting to intimidation tactics, according to the Kuala Lumpur Consumer Safety Association. While licensed moneylenders are allowed to impose an interest rate of 12% with collateral and 18% without collateral, some companies are charging even more. The association has received over 200 complaints per month, with civil servants also falling victim to these tactics. Many victims are afraid to seek help because the moneylenders have threatened to get them sacked from their jobs. The association expects an increase in complaints this year due to the economic situation. Licensed moneylenders are also violating the law by retaining their borrowers’ ATM cards and coming to their homes or workplaces to threaten them. The ministry’s enforcement constraints contribute to this problem as there are only 40 enforcement officers to monitor over 4,000 licensed moneylenders nationwide. The association is urging the government to transfer the enforcement of moneylending laws to the Domestic Trade and Cost of Living Ministry, which has more personnel to handle enforcement. Two victims of unscrupulous moneylenders shared their stories of exorbitant loan amounts and intimidation tactics. The association advises victims to make a police report, gather evidence, and seek legal advice.
Credit: The Star : News Feed
