Illegal Moneylenders

It's an offence to borrow from the illegal moneylenders (a.k.a. Loan Sharks or Ah Longs). That's what the Federal Commercial Crime director Datuk Ramli Yusuf has intended to do by proposing to the Housing and Local Government Ministry. He has even stated that with such a law in place, it would deter people from borrowing from Ah Longs and instead compel them to go to licensed moneylenders. (source: 30 Jan, The Star)

At the same time, borrowers-to-be have been advised to check with the police or the ministry to see if the moneylenders were legal. At times, people who needs money urgently have no time to wait for the government staff's response time. All this talk in the newspapers lead to nowhere. How are they helping?

On the contrary, Malaysia's no. 1 cop, Inspector-General of Police Tan Sri Musa Hassan, stated that the priority in the fight against loan sharks should be to educate the public against such borrowings, instead of prosecuting the borrowers. Meaning to say, that Ramli's statement is now redundant? (source: 2 Feb, The Star)

And then the Housing and Local Government Minister Datuk Seri Ong Ka Ting made the following statement (source: 3 Feb, The Star)
"The Cabinet has rejected a recent suggestion to prosecute those who borrow from loan sharks"

I agreed that actions should be taken against the loan sharks instead and not the borrowers. The above really shows how bad is the communication between the police force and the federal government as was in the case of increasing traffic fines previously.

On one hand the borrowers would be in deep shit if they had defaulted on the re-payment which will incur the wrath of the loan sharks known for being ruthlesss in obtaining the capital amount plus the high interest rates. Then the borrowers will wander around as they can't even report to the police for fear of being arrested even though there was property damage, assault and in some cases murder. Only way out of this deep shit - suicide. This will be the scenario if the new act was implemented.

Hopefully in future, people who wants to suggest something to the public at large will think through before opening that big mouth.

(Extracted from 4 Feb, The Star) MCA Public Services and Complaints Department head Michael Chong noted that hawkers and farmers were sometimes left with no choice but to borrow from loan sharks due to the requirements imposed by banks.

“How could you expect a hawker or farmer, for example to produce all the necessary documents required by banks?” he asked. “Furthermore they have to be subject to Bank Negara’s Central Credit Reference Information System and private credit reference agencies. “In addition to this, they would have to wait for a long time before their loan is approved,” he said.

Michael Chong is just playing politics here as he agreed with the prosecution of borrowers earlier: (source: 30 Jan, The Star) "Michael Chong agrees with the police proposal to penalise people who borrow from Ah Longs. “This is the best way to teach the public a lesson. They know it is illegal to borrow money from loan sharks but they still do it,” he said."
Tags: Loan Shark, Ah Long, Illegal Moneylender, Moneylender, Police, Malaysia, Borrow, MCA, Michael Chong