KL Consumer Safety Association: No need to fear the loan sharks

KUALA LUMPUR: Lack of exposure on law relating to 'ah long' or loan sharks and the fear of making a police report after being threatened are among the factors causing the victims of these illegal moneylenders to endure endless debts.

What the victims don't know is, their continuous payments to the loan sharks encouraged the illegal moneylenders to gain profit out of their victims' misery, said Kuala Lumpur Consumer Safety Association chairman Samsudin Mohamad Fauzi.

"To those who fall victims to the loan sharks trap, where some even get death threats, please don't be afraid to make a police report because Malaysia is a democratic country, we have laws and regulations.

"These loan sharks are not immune from the law but when victims are too afraid to make a police report on them, that makes them immune," he told Bernama, here.

He said before making a police report, the victim should get all the information such as the type of threat, phone numbers, pictures or vehicle registration number which can be used to assist in the police investigation.
"The truth is, these loan sharks, they are human too... and they have the fear of getting caught by the authorities.

"Therefore, after clearing the debt, the borrowers should immediately make a police report if they were continuously harassed by the loan sharks," he said.

Samsudin said the illegal moneylender could be penalized under Section 5(2) of the Moneylenders Act 1951 that carries a fine of not less than RM20,000 and not exceeding RM100,000 or imprisonment not exceeding five years or both, if convicted.

He said a new law restructuring should be made in order to address the illegal moneylender problem.

"As an example, a loan shark who is arrested by the police under Section 5(2) of the Moneylenders Act will not be subjected to criminal penalty if someone comes and claim that the loan shark was his employee.

"In that case, the police had to submit the case to the Ministry of Urban Wellbeing, Housing and Local Government and the loan shark was acquitted and discharged under the section, and may just be fined for violating the terms of the money lending companies license," he said, adding that the review of the law would enable the loan sharks to be punished under criminal law. – Bernama