Why We Need Loan Sharks | Ah Long
Loan Sharks is not entirely bad as their services is needed by some individual.
We often hear the horror stories about the harassment of Loan Shark for non paying on time.
Some of the borrowers have no choice by run away from their families or the worst case take their life.
There are very much more the Home Minister and financial institutions can do to curb Ah Long activities.
Read the true experience story told by Saboky, who was a victim of a loan shark some time ago.
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Ah Long(Song Song Song)
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No one to turn to, only loan sharks
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WHILE I welcome the move by the Home Minister to intensify the monitoring of Ah Long activities (The Star, July 3), let’s not forget the fact that as long as there is a demand there will be a supply.
Many fell victim to Ah Long for one simple reason – they needed money. They borrow for various reasons, and not only for activities such as gambling, extravagant lifestyle, or to buy drugs, etc.
I became a victim of a loan shark some time ago, when I was facing serious financial problems. With substantial hospital bills for my late mother, I ended up heavily indebted to financial institutions, either through personal loans or credit cards.
Due to my meagre take home pay (after deductions to service the loans), there was not much left for food as I had to foot the bills for electricity, telephone, etc.
I tried to secure a bank loan to help ease the situation while waiting for the previous loans that I used for my mum to be fully settled.
Thanks to the Central Credit Reference Information System, my applications to various financial institutions were rejected even though I had not defaulted on repayment of any loans taken.
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Ah Long pte ltd (give me back my money)
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The reason given was that I was over committed. After attempts to get help from friends and siblings failed, I turned to a loan shark as a final resort.
Life was like hell after that. A day or two in payment delays brought tremendous harassments and threats from the loan shark. I dared not make a police report, fearing for my life.
I have since became mentally disturbed, and finally I was out of job due to the fact that I was no longer fit to work.
The question is, did I do anything wrong by borrowing from the loan shark so that I could go on living?
In my humble opinion, we do not simply jump to the conclusion that a debtor of a loan shark has nobody to blame but himself or herself. When I was facing a situation when life could not go on because there was no money to buy food, the Ah Long was there to lend me a hand. I have to stress that I am no supporter of loan sharks, and that I am fully aware of the consequences of failing to pay up. The principle is simple, you owe, you pay. Nobody wishes to be a debtor, less become a victim of an Ah Long.
Having said that, I honestly believe there are still individuals out there who will borrow from loan sharks after attempts to funds from other sources fail.
So to the financial institutions, be leaders by working with the Government to curb the activities of Ah Long; become caring financial institutions besides making profits.
SABOKY, Prai.
fr:thestar.com.my/news/story.asp?file=/2010/7/5/focus/6607638&sec=focus
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老师嫁老大 Ah Long Pte Ltd – 阿窿
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Bigger bite soon in fight against loan sharks
KUALA LUMPUR: The Government will soon be taking the bite out of the notorious loan sharks – or Ah Long – by imposing punishment where it will hurt them the most – their pockets.
Under a proposed amendment to the Moneylenders Act, loan sharks can be fined up to RM1mil for operating without a licence, a 10-fold increase from the current fine of RM100,000.
It also applies to moneylenders who continue to operate after their licences have been revoked or have expired.
The Bill, which was tabled for first reading in Parliament, will, among others, see those who harass and intimidate borrowers being slapped with heavier fines, and give police additional powers to curb such activities.
It will also reward anyone who provides the authorities with information leading to a conviction against loan sharks.
In other developments:
> MCA Public Services and Complaints Department head Datuk Michael Chong wants a clear definition of the term “illegal moneylender”; and
> Moneylenders complain that the Bill may affect their business.
fr:thestar.com.my/news/story.asp?file=/2010/7/13/nation/6655339&sec=nation
Moneylenders Act to be tightened and penalties increased
By LEE YUK PENG
KUALA LUMPUR: Loan sharks face a fine of up to RM1mil while their henchmen, who go around intimidating and harassing people, may be fined up to RM50,000 or jailed up to two years under proposed amendments to the Moneylenders Act.
The proposed fine for Ah Long, who are moneylenders operating without a licence, is a 10-fold increase over the current fine of RM100,000.
The fine also applies to moneylenders who continue to operate after their licences have been revoked or expired.
Moneylenders who harass their borrowers also face a fine of up to RM250,000 or three years’ jail or both.
Previously, they were fined only up to RM100,000 or jailed up to 15 months or both.
For those who help moneylenders harass borrowers, the current penalty is a maximum fine of RM20,000 or 12 months’ jail or both.
The Bill, which introduces new offences and stiffer penalties to curb the activities of illegal moneylenders, was tabled for first reading by Housing and Local Government Minister Datuk Chor Chee Heung in the Dewan Rakyat here yesterday.
Besides providing tougher regulations on the moneylending business, the Bill gives more power to the police as well as for the registrar and inspectors of moneylenders to act against offenders.
One of the regulations requires moneylenders to display their original licence at all times.
A new section in the Bill prohibits the licensee and the unlicensed moneylender from employing agents “to invite” any person to borrow money.
Another new section provides for a reward for information leading to the conviction of any offender under the Act.
The police is given the additional power to inspect any premises without notice, to make an arrest without a warrant, and to seize records and documents as well as computerised data.
On proof of a moneylending business, the Bill proposes that evidence of a monetary loan with interest would amount to the business of moneylending in the absence of rebutting evidence.
A record of previous convictions would be admissible as evidence before sentencing under this Act, if this is within five years from the present conviction.
The Bill will cover the whole country, including Sabah and Sarawak.
fr:thestar.com.my/news/story.asp?file=/2010/7/13/nation/20100713071829&sec=nation
Define illegal moneylenders, Govt told
PETALING JAYA: It is important for the Government to define the meaning of “illegal moneylenders,” said MCA Public Services and Complaints Department head Datuk Michael Chong.
He said most borrowers who came to complain to him about harassment from Ah Long were actually just taking advantage of the authorities’ clampdown on loan sharks.
“These people may have borrowed money from their friends. But when they cannot return the borrowed money to their friends, they just report them as Ah Long,” he said yesterday.
Chong was commenting on a Government proposal to increase the fine of RM100,000 to RM1mil under an amendment to the Moneylenders Act to clamp down on loan shark activities.
In addition, the proposal will also see all moneylenders and their henchmen fined up to RM250,000 and RM50,000 respectively for harassing their borrowers.
Chong said the proposal showed the Government had conducted an in-depth study into the problem of loan sharks in the country.
He also urged the Government to review the interest rates it had imposed on licensed moneylenders.
“The current interest rate for licensed moneylenders to charge their borrowers is outdated. Even banks are collecting more interest. How are they going to survive?” he said.
Meanwhile, Malaysian Licensed Moneylender Association president R. C. Veeraseelan said the proposed increase in fines would help reduce the activities of illegal moneylenders or Ah Long in the industry.
“It is a right move for the betterment of the public and borrowers. However, we are disappointed that licensed moneylenders are also included under those who may be fined for harassing their borrowers.
“This may affect our business,” he said. He also expressed regret over the decision to give the police more powers to inspect premises without a notice, even when it involved legal moneylenders.
He said customers would lose confidence in some licensed moneylenders if they were being inspected regularl y, adding that the association would appeal to Housing and Local Government Minister Datuk Chor Chee Heung on the various issues affecting licensed moneylenders.
fr:thestar.com.my/news/story.asp?file=/2010/7/13/nation/20100713071919&sec=nation
Errant money lenders beware
PETALING JAYA: The Housing and Local Government Ministry will not hesitate to revoke the licences of money lenders who act like loan sharks.
Minister Datuk Chor Chee Heung sounded the warning as his ministry had received reports of irresponsible money lenders who were charging customers excessive interest rates.
“Even though the number of such money lenders is small, we are not taking it lightly. We want to ensure that all money lenders follow the rules and regulations,” he said.
Chor told reporters this after witnessing a signing ceremony of the Sukuk Programme between MIMB Investment Bank Bhd and LBS Bina Group yesterday.
He said he had instructed his ministry’s enforcement officers to carry out random checks on money lenders.
“We do not want a small number of ‘bad guys’ to jeopardise the reputation of the whole industry,” he said, adding that the public should report money lenders who violated the rules to his ministry or the police.
He said there were 2,811 licensed money lenders under his ministry, which provided RM4.2bil in loans to companies and individuals last year.
“We have revoked the licences of some money lenders who overcharged their customers on interest rates,” he said.
Chor urged the public not to borrow from Ah Longs as they would end up with bigger problems in the future.
“Ah Long loan plans may look attractive to desperate people but they should consider the consequences as it is illegal,” Chor also said.
fr:thestar.com.my/news/story.asp?file=/2010/7/14/nation/6658812&sec=nation
Man’s car made collateral by loan sharks thanks to in-debt friend
KUALA LUMPUR: A good deed has left a man in a quandary after loan sharks seized his vehicle and are keeping it as “collateral” on a debt.
Chang Wei Kit, 28, had loaned his car to a childhood friend but a group of loan sharks confronted his friend on July 1 and demanded their money.
“I am worried that the car will be misused or involved in a criminal case. I am also still servicing a bank loan on the car,” he told reporters at the MCA Public Complaints and Services Department here yesterday.
His friend lodged a police report the day the car was seized. The friend said that he owed loan sharks RM15,000.
Chang only heard about it from his sister three days later. He said he loaned the car to his friend almost a year ago.
“At first, my father and I tried to convince the Ah Long to return the car because it is mine,” he said, adding that he was unaware of his friend’s problems with loan sharks.
“My father even offered to pay a portion of the debt but they refused and demanded RM11,000,” he said.
“I asked him to come to today’s conference but he has stopped answering my calls. I don’t know what else I can do to get my car back,” he said.
Department chief Datuk Michael Chong said loan sharks should not cause trouble to those who were not involved.
“Sometimes they go overboard. They must differentiate between borrowers and innocent people,” he said.
Chong also advised people who borrowed money or items from friends to sign a simple contract to avoid future disputes.
“When it comes to money, there are no friends,” he said.
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Engineers and bank officer among Ah Long victims, says MCA man
JOHOR BARU: Even professionals seek out Ah Long for help to settle their debts, Pasir Gudang MCA crime prevention squad vice-president Sim Chan Teck said.
He cited previous cases he handled where he came across an engineer and a bank executive who took loans from illegal money lenders.
“Most of those who borrowed from Ah Long are businessmen,” he said, adding that many of them were facing mounting gambling debts.
In an interview yesterday, Sim said he received an average of three cases of loan shark victims monthly.
The loans would range between RM10,000 and RM100,000, he said.
“The victims would usually borrow from five or six Ah Long just to settle the interest stipulated in the deal.
“However, these Ah Long are cunning. They could all be from the same network,” he said, explaining that the loan shark would probably recommend the borrower to another money lender.
Sim said that he found one case particularly sad as it involved a woman who was forced to pay off the debts of her boyfriend.
“She had acted as the guarantor. When the man ran away, the Ah Long came after her and splashed paint at her house and forced her to pay the sum owed,” he said.
He said the loan sharks would often advertise their contact numbers on cards and posters.
“When a prospective customer calls the number, they would not pick up the call. Instead, they would return the call from another number, which is often an unlisted.” “That will at least hamper their business to a certain extent,” he said.
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Ah Long terrorise man over brother’s debt
KUALA LUMPUR: Loan sharks have struck fear in the family of a man whose brother could not settle debts amounting to thousands of ringgit.
Cheong Teck Loong, 45, said two groups of Ah Long had showed up at his house to look for his brother, Teck Paw, 39. The brother was believed to have borrowed money on July 8 to bet on football matches in the recent World Cup.
“Red paint was splashed on my house a week later,” said Cheong.
“This incident has terrified my wife and children,” he said at a press conference at the office of MCA public complaints and service department chief Datuk Michael Chong at Wisma MCA here yesterday.
Cheong said his family had paid for Teck Paw’s three previous loans amounting to RM150,000.
Appealing to the loan sharks to stop harassing his family, Cheong said: “Please stop disturbing us. We cannot afford to pay his (the brother’s) loans any more.
“I am very concerned about my family’s safety.”
He added he did not know the whereabouts of Teck Paw, who has since gone missing.
Michael Chong said his department had received 159 cases of people owing money, totalling RM15mil, to loan sharks.
He urged people not to borrow from loan sharks as they would end up in a deeper hole.
fr:thestar.com.my/news/story.asp?file=/2010/7/21/nation/6701309&sec=nation
Demand for Ah Long continues
JOHOR BARU: A total of 13,000 illegal posters put up by Ah Long have been removed by the Johor Baru City Council this year.
Johor Baru mayor Jaffar Awang said that a special team were assigned to remove the posters.
“But our efforts seem to go to waste as the people are still turning to the Ah Long for money.
“If there’s a demand, the Ah Long will continue putting up posters and there is nothing much we can do about it,” he said at an operation to remove posters conducted with police here yesterday.
Jaffar added that a total of 267 phone numbers of Ah Long have also been forwarded to the Malaysian Communications and Multimedia Commission (MCMC) for further action.
Johor police chief Deputy Comm Datuk Mohd Mokhtar Shariff said that the police received about 101 reports on loan sharks this year.
“Forty three reports were on illegal money-lending activities while 58 were reports on Ah Long who injured, threatened or threw paint at homes of borrowers,” he said, adding that nine suspects have been detained.
Police are also investigating the parties that print Ah Long posters.
One Ah Long, known as Ah Wai, said that he usually puts up about 20 to 30 posters a month and was not deterred by poster-removing operations by the authorities.
fr:/thestar.com.my/news/story.asp?file=/2010/7/22/nation/6713733&sec=nation
2 loan sharks get death for murdering man for RM150 debt
By K. KASTURI DEWI
GEORGE TOWN: Two loan sharks, who murdered a businessman four years ago for a RM150 debt, were sent to the gallows by the High Court on Monday.
Justice Abdul Halim Aman ticked off Tan Hoe Choon, 34, and Poh Weng Nam, 31, for taking a man’s life for a “mere” RM150 debt owed to them by the deceased’s brother.
“You did not show any sympathy to the victim as though there is no law in your life. Other people seem to be of no value to you. What is important to you is money, money, money,” he said when ordering Tan and Poh to be sentenced to death.
Tan is a businessman by profession while Poh is a DVD seller.
The men were found guilty of murdering Lee Lai Beng, 44, at 10pm along Jalan Pantai Bersih in Butterworth on Sept 31, 2006.
They were charged with committing the offence together with five others still at large.
Both men, represented by S. Anthonysamy and V. Parthipan, had been ordered by the High Court to enter their defence on June 30.
Deputy Public Prosecutors Azhar Mokhtar and Tan Guat Cheng appeared for the prosecution.
A third accused Ho Han Choon, 30, who was jointly charged with Tan and Poh, had been acquitted and discharged after the court ruled that no common intention was proven that he was involved in the crime.
Justice Abdul Halim said both Tan’s and Poh’s defence were bare denial and an afterthought.
He said the testimony by four of the prosecution’s main witnesses, including Lee’s younger brother, was consistent with the prosecution’s case.
“The testimony of the deceased’s brother was consistent and was not affected even though the defence put him through intensive cross-examination,” he said.
Justice Abdul Halim also said both the accused had slashed and stabbed the deceased, almost severing the deceased’s younger brother’s left hand.
“There is only one conclusion. Your act is by someone uncivilised. The deceased died at a young age and, because of this, a wife lost a husband, his children lost a father, his parents lost a son and his younger brother lost a brother.
“The deceased had nothing to do with his brother’s debt but he was still murdered for reasons only known to both of you,” he said.
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Help SMEs from turning to loan sharks, banks urged
By ONG HAN SEAN
KUALA LUMPUR: Banks have been urged to be more aggressive in helping businessmen in small-and-medium industries because many of them are turning to loan sharks in desperation.
Banks could play an important role in helping the Government curb the loan shark problem, said Deputy Domestic Trade, Co-operatives and Consumerism Minister Datuk Tan Lian Hoe.
She urged banks to go down to the district level and assist the businessmen.
Police statistics showed that 484 reports involving illegal moneylenders were lodged last year – almost double the 256 cases in 2008.
Johor registered the highest number of cases at 118, followed by Selangor at 85.
Tan said this at a press conference after opening a business seminar here yesterday.
She also announced that an additional RM3bil would be allocated to the Working Capital Guarantee Scheme (WCGS) to assist businessmen.
“This brings the total to RM10bil set aside for SMEs,” she said.
Tan added that the financial assistance would be delivered through grants and loans disbursed through government agencies.
The scheme as well as the Industry Restructuring Financing Guarantee Scheme (IRFGS) were established as part of the Government’s efforts to ensure SMEs have better access to financing facilities under the 10th Malaysia Plan.
Under the two schemes, the Government will guarantee 80% of the financing for Malaysian companies with shareholders’ equity of less than RM20mil.
WCGS’ financial facilities are RM50,000 to RM10mil per company.
The IRFGS was set up to promote investments to increase productivity, high value-added activities such as research and development and use of green technology.
“SMEs are very important in the development of Malaysia’s economic future as 548,268 registered SMEs had contributed a total of 31.4% to the gross domestic product,” said Tan.
fr:thestar.com.my/news/story.asp?file=/2010/7/28/nation/6748389&sec=nation
Tips on how to get loans
By LEE KIAN SEONG
EVERY year, the SMI Association of Malaysia receives complaints from its members about the difficulties of securing credit.
President Chua Tiam Wee says while companies with good track records do not face a major issue in this area, start-up companies and those with less-than-rosy track records continue to have doors shut on them.
Wee suggests two solutions. The first is his call on banks to evaluate the applications of small and medium enterprises (SMEs) carefully and to try to understand the nature of their business and industry.
The second is a call to empower SME Bank to collect deposits, along the lines of a commercial bank.
“This may then help the bank to increase lending to SMEs,” he says.
Chua says SME Bank currently relies on Government funding and its paid-up capital of about RM1.35bil is very small.
How does a bank rate the credit worthiness of an application?
AmBank (M) Bhd retail banking managing director Datuk Mohamed Azmi Mahmood says banks would generally assess five credit factors of an applicant.
These are character, capacity, capital, condition and collateral.
Azmi says character refers to the borrowers’ “willingness” to repay while capacity refers to their ability to generate adequate cashflow to repay the loan.
The remaining three factors – capital, condition and collateral – can be mitigated or compensated by the favourable economic climate and government-guaranteed schemes such as those under Credit Guarantee Corp (M) Bhd (CGC) and Syarikat Jaminan Pembiayaan Perniagaan Bhd, he says.
Azmi says borrowers must show good character, management competency and ability to repay existing loan obligations and other creditors.
“The lack of credit history for those applying for bank loans for the first time can be mitigated and compensated by relevant supporting documents such as updated financial accounts, bank statements and letter of award,” he says.
He says it is important that SMEs maintain proper book keeping to ensure that these documents are available when required, especially their audited financial accounts. “Loan applications from sectors or industries that the Government is promoting will also have a better chance of having their applications approved,” Azmi says.
He says SME loans make up a fourth of AmBank’s loan portfolio to corporates and enterprises last year.
Hong Leong Bank Bhd group managing director Yvonne Chia says loan applications that show good repayment capacity, acceptable business risks and account performance track records will be considered favourably.
She says financial assistance to SMEs comprised 40% of Hong Leong Bank’s business banking portfolio as at March 2010.
Meanwhile, HSBC Bank Malaysia Bhd deputy managing director (commercial banking and director sales) Thomas Varughese says one of the main reasons to reject an application is the lack of financial information that can show the sustainability or viability of a business.
For instance, he says, many SMEs do not pay enough attention to managing their financial position to portray a picture of success, or to show evidence of business continuity.
This makes it difficult to approve the application, Varughese says.
“Poor credit history of the SMEs, including that of its directors and/or guarantors is another issue,” he says.
Varughese says if the SMEs or their associated directors or guarantors have exhibited poor credit history, which is shown in missing payments on their existing loans including personal loans and credit cards, this will give a negative impression on the overall credit assessment.
To secure a loan, he says, SMEs should have a detailed business plan that explains why the loan is needed in the first place.
“It will also be helpful to provide information about the business (company or management profile), nature of the business and financial statements or accounts for at least the last two to three years,” he says.
Varughese says the provision of well-thought-through cashflow statements can also provide further evidence for the need for the financial assistance, adding that SMEs may visit HSBC website for guidance on how to apply for loans.
He says that as of last year, more than 22% of HSBC’s loan portfolio is SMEs loans.
Varughese says the bank is not keen to finance businesses that may be considered as unsustainable or destructive to the environment.
“At HSBC, we believe that being a sustainable business is not only about delivering profitable long-term growth, but also about maintaining a stable environment and building healthy, educated communities,” he says.
fr:biz.thestar.com.my/news/story.asp?file=/2010/7/31/business/6752022&sec=business
Ah Long war bears fruit
By JOSHUA FOONG and ITH SOTHOEUTH
KUALA LUMPUR: The all-out war against loan sharks is showing results as the number of complaints against them at the MCA Public Services and Complaints Bureau has fallen significantly.
Bureau chief, Datuk Michael Chong, attributed the smaller numbers to the all-out campaign launched against illegal money lenders by Home Minister Datuk Seri Hishammuddin Tun Hussein in June last year.
Chong said the number of complaints against the Ah Long had fallen from 636 cases involving RM56.6mil in 2008 to 382 cases worth RM30.8mil in 2009.
As of yesterday, there were 178 cases involving RM16.8mil.
“Ah Longs have long been under fire. While many have chosen not to borrow from them, there are also some borrowers who did not repay their loans,” he told The Star yesterday.
“These loan sharks also cannot report their plight to the police as the nature of their business is illegal,” he said.
“Very soon the country will be rid of these loan sharks,” Chong added.
Meanwhile, Malaysian Licensed Money Lenders Association (MILMA) president R.C. Veeraseelan said the money lending industry, which was worth RM4bil last year, had been “gravely affected” by the campaign against the Ah Long which had given the industry a bad name.
He said many debtors had also used loopholes in the Money Lenders Act to avoid repaying the money they borrowed.
“There are 2,811 licensed money lenders in the country and out of the loans given out, 20% are non-performing, causing lenders to lose about RM50mil last year,” he added.
In Putrajaya, Housing and Local Government Minister Datuk Chor Chee Heung said licensed moneylenders should not be unduly worried over the proposed amendments to the Moneylenders Act.
“They raised many issues and one of them was the proposed 10-fold increase in the maximum fine for operating a moneylending business without a licence.
“I explained to them that the proposed fine was between RM250,000 and RM1mil and the licensed moneylenders, as serious businessmen, should make sure they renew their licences on time,” he said after a meeting with the MILMA here yesterday.
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Man killed in Ah Long attack
By STEVEN DANIEL
KUALA LUMPUR: A building contractor was killed while attempting to save his girlfriend from being assaulted by five men believed to be Ah Long.
Sentul OCPD Asst Comm Zakaria Pagan said Tan Boon Tat, 51, and his Filipina girlfriend were leaving a karaoke centre in front of the Kuala Lumpur wholesale market at about 1.30am yesterday when they were attacked.
“At least five men approached the victims and demanded that the woman return money allegedly borrowed by her brother.
“They then assaulted her,” he said.
Tan, from Kampung Kayu Ara in Petaling Jaya, tried to help his girlfriend but he was beaten up by the group.
He collapsed and succumbed to serious head injuries.
The men fled in a black BMW when they saw Tan’s lifeless body.
Tan’s body was sent to the Kuala Lumpur Hospital for a post-mortem. The case is being investigated as murder.
Meanwhile, in Kajang, police arrested a 14-year-old boy after he allegedly sodomised a nine-year-old boy in a classroom of a private school near here.
It is learnt that the incident occurred on Aug 10 but the victim only lodged a police report on Wednesday.
The suspect was picked up at his home the same day.
Kajang OCPD ACP Shakaruddin Che Mood said the suspect has been released on police bail since he was a minor. In another case reported by Bernama, four suspected robbers were cornered at a police roadblock in Sentul here early yesterday shortly after they robbed an Internet cafe in Dang Wangi.
They were believed to be on the way to rob another Internet cafe in Sentul when they were pulled up at the roadblock along Jalan Ipoh at about 5am, said ACP Zakaria.
He said the police seized a machete from a Proton Wira they were travelling in.
He said the four suspects, aged between 23 and 27, were believed to be responsible for a spate of armed robberies in the capital.
The police are investigating whether they were also involved in another case in Kepong where robbers armed with parang held up an Internet cafe.
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Loan interest up every five hours
PETALING JAYA: A real estate agent had to pay RM2,400 in interest to a loan shark for every five-hour delay in repayment.
This is the latest tactic by a loan shark to force borrowers to pay up, said MCA Public Services and Complaints Department head Datuk Michael Chong.
Chris, 30, (not her real name) borrowed money to help her then boyfriend repay his gambling debts five months ago and ended up owing 14 loan sharks totalling RM98,140, said Chong yesterday.
The real estate agent from Wangsa Maju broke off with the man after realising that he had perpetual gambling habits.
The boyfriend had gone missing since January and the loan sharks had called the woman’s office and harassed her, Chong said.
Chong managed to negotiate with the “Ah Long” to accept the return of their capital sum totalling RM50,000 by Chris but one Patrick demanded RM6,000 in interest.
Asked why the high interest, Patrick claimed that Chris was often late in paying up.
Quoting Patrick’s words, Chong said: “Even if she is late for five hours, she has to pay RM2,400 in interest.”
Chong said the demand was unreasonable, adding that Chris would lodge a police report against Patrick at the Sentul police station tomorrow.
“Licensed moneylenders only charge 1.5% interest a month,” he said. Chong again reminded the public not to turn to loan sharks to borrow money.
Up to yesterday, the department has received 196 cases of “Ah Long” harassment. The highest number of cases was in April, at 36, he said.
At the press conference, Chong also announced that businessman and philanthropist Datuk Yap Kin San had donated RM50,000 to the Tabung Bantuan Bencana Pakistan to help the country hit by massive floods since July 22.
The department also donated RM5,000 in aid of the victims.
fr:thestar.com.my/news/story.asp?file=/2010/8/30/nation/6943741&sec=nation
Mum disowns son over debt
JOHOR BARU: A tyre shop owner has disowned her son after Ah Long harassed her over his RM60,000 gambling debt.
Bong Swee Yin, 50, said although she could tolerate her son stealing from her to fuel his online gambling habit, the visit by the Ah Long was “unbearable.”
“I can accept and even forgive him for stealing from me over the past eight months. However, leaving me to settle his RM60,000 debt is too much.
“I have decided to disown him,” she told reporters at a press conference organised by Johor Baru MCA public complaints bureau deputy chief Michael Tay here.
She said she hoped the Ah Long would stop harassing her since she had severed family ties with her 25-year-old son who would often stay up until the wee hours of the morning gambling online on his computer.
“Whatever the Ah Long want to do to him, I don’t care anymore. I am very disappointed with his behaviour,” she said, adding that her son had been missing since Aug 25.
Bong also vowed that even if her son were to repent and beg for forgiveness, she would not help him pay his debts.
“If he comes home and explains his actions, I am still willing to take him back. I will not, however, help pay his debts. That will be his problem,” she said.
“Before the Ah Long came to my shop last Wednesday, I had no idea that my son’s gambling habit was so serious.
“He has always been rebellious and disobedient but I never imagined him getting into this kind of trouble,” she said, adding that the Ah Long had threatened to seize goods from her shop if her son did not settle the debt soon.
Tay said almost 90% of the Ah Long cases the bureau received this year were linked to debts incurred through online gambling.
“Many people turn to Ah Long when they get into debts. I urge the public to never ask Ah Long for help no matter how deep the trouble they are in,” he said.
fr:thestar.com.my/news/story.asp?file=/2010/9/4/nation/6977758&sec=nation
Ah Long detained for assaulting debtor
By SIMON KHOO
KUANTAN: An illegal moneylender was detained by police after he allegedly beat up a client and confined him in an apartment at a resort near Bentong.
State CID chief Asst Comm T. Narenasagaran said the 25-year-old suspect was picked up in Kuala Lumpur after the victim lodged a report.
ACP Narenasagaran said the victim claimed he was beaten up on Sept 4 for failing to repay a loan of RM4,000.
”The 24-year-old man was supposed to repay RM5,000 to the illegal moneylender within three days but was unable to do so.
”He was then taken to an apartment, beaten repeatedly and locked up for a day,” he said, adding that the man suffered injuries to his face, body, hands and legs.
ACP Narenasagaran said the illegal moneylender released the victim after forcing him to contact his family members to prepare a sum of RM10,000 to settle the matter.
He said the victim then sought treatment for his injuries before lodging a report at the Bentong police station.
”We have classified the case as voluntarily causing hurt using dangerous weapons,” he said.
fr:thestar.com.my/news/story.asp?file=/2010/9/14/nation/7031546&sec=nation
Weeding out illegal banner menace
VALLEY VIEW by TAN KARR WEI
LOCAL authorities around the Klang Valley seem to be fighting a losing battle against illegal banners that are being put up at every nook and corner.
From SS2 in Petaling Jaya to Bandar Puchong Jaya and all the way to Old Klang Road and Cheras, these illegal banners are being put up by irresponsible people opting for a cheap method to advertise their products.
While illegal money lenders have been boldly putting up their banners and stickers all around the city, the latest product to make its way into the scene are sex toys and sexual enhancement creams.
If you think only these shady businesses put up illegal banners, then you would be in for a surprise.
All around towns and cities, there are banners for kindergartens, restaurants, warehouse sales, tuition centres and language courses, to name a few.
Even big-name developers, shopping malls and electronic brands have put up professional looking banners without a license.
To identify legal banners, most councils issue a license in the form of a sticker that is attached onto the banners that would be put up.
Local authorities have pumped in a lot of resources to remove these illegal banners and stickers but none seem to have found a workable and effective solution.
Most have a schedule for taking down these banners but new ones would be put up almost as soon as the truck full of banners leaves the location.
In Petaling Jaya, the task of taking down these banners was first given to Alam Flora but it could not cope and the Petaling Jaya City Council (MBPJ) has since taken back the responsibility.
Kampung Tunku assemblyman Lau Weng San had in 2008 started a programme where residents were rewarded between RM1 and RM5 (from his constituency development fund) for each banner taken down and brought to his office.
The programme was fairly successful and helped to rid commercial areas like Sea Park of the unsightly banners but Lau had since stopped the programme when the MBPJ came up with their own to tackle the issue.
To try to nip the problem in the bud, MBPJ offered a reward of RM250 if the public informed the council when they saw someone putting up banners and the perpetrator is caught red-handed.
While it showed MBPJ’s effort in tackling the problem, catching these sneaks red-handed is not as easy as it sounds and so far, only a handful have been caught and charged.
Last year, the Subang Jaya Municipal Council teamed up with the Malaysian Communications and Multimedia Commission (MCMC) to cut off the lines of numbers found on illegal banners and other councils like MBPJ and the Kuala Lumpur City Hall (DBKL) followed suit.
The move has yet to show any signs of effectiveness because it takes some time for the lines to be cut off.
More importantly, prepaid phone lines are available cheaply in Malaysia, with most telecommunication companies offering a start-up pack for less than RM10.
Perhaps the root of the problem is that banner printing services are available very cheaply.
Even these printing companies have been aggressively advertising their services on illegal banners put up all around neighbourhoods and commercial centres.
Maybe the local authorities should make it harder for these companies to print banners by making it mandatory for them to see a banner license before printing, failing which they should be fined heavily.
Another method is to impose stringent guidelines for these banner-printing businesses when issuing a license to them.
With no effective form of measure in sight so far, the councils need to look at the problem from all angles and work together with the relevant agencies to come down hard on those involved in putting up illegal banners.
fr:thestar.com.my/metro/story.asp?file=/2010/9/22/central/7068545&sec=central
Loan sharks operating at criminal court complex
By M. MAGESWARI
KUALA LUMPUR: Loan sharks are “circling” the criminal courts with offers to act as bailors and lending bail money to family members of the accused for easy profit.
Court officials around the country have detected the operations of these loan sharks, believed to be part of a syndicate.
Sources said two “professional bailors” used to appear in a Sessions Court in Kuala Lumpur to post bail for foreigners accused of various offences.
“Sometimes, the foreigners would have given these people money to act as ‘bailors’.”
The sources said in some cases, these foreigners absconded and the bailors would then give excuses that they could not trace the accused.
“It is a syndicate operation,” said the sources.
Some judges, they added, were following the registrar’s advice by not allowing the same person to act as bailor in multiple cases and had even interviewed bailors in open court to ensure they were genuine.
Such activities had caused the Registrar of High Court of Malaya to issue a directive on Aug 25 to all court directors in Malaysia for a notice to be put up, warning the public about the operations of these loan sharks, also known as Ah Long.
KL Court director Azizah Mahamud said notices were placed at various locations at the Jalan Duta court complex last week to raise awareness and warn people against having dealings with these “bailors”.
“We have instructed all courts nationwide to put up the notice at their respective premises,” she said.
The notice reminded the public that it was an offence to take loans from unlicensed money lenders.
The notice also warned the public about the activities of unscrupulous people who claim to be able to settle criminal cases for payment.
“The courts have never appointed any agent or individual to settle any cases for us,” it stressed.
The notice stated that the public should not be taken in by such offers and encouraged them to report to the police or court officials if they were approached by Ah Long or touts.
fr:thestar.com.my/news/story.asp?file=/2010/10/2/nation/7149228&sec=nation
Loan sharks can face action for acting as bailors
LENGGONG: Loan sharks who offer to act as bailors and lend bail money to family members of accused persons can be taken to court.
Minister in the Prime Minister’s Department Datuk Seri Mohamed Nazri Aziz said the Government would use the provisions of existing laws against these Ah Long if it was found they had acted illegally.
“I have yet to receive a report but I think such activities do take place,” he told reporters at a Hari Raya open house hosted by Lenggong MP Datuk Shamsul Anuar Nasarah at Taman Kota Tampan here yesterday.
It was recently reported that court officials around the country had detected the operations of these loan sharks, believed to be part of a syndicate.
Some judges, on the advice of the court registrar, had not allowed the same person to act as bailor in multiple cases and had also interviewed bailors to ensure they were genuine.
The Registrar of the High Court of Malaya issued a directive on Aug 25 to all court directors in the country to put up notices to warn the public about the operations of these loan sharks.
Home Minister Datuk Hishammudin Hussein had responded to the issue by saying his ministry was monitoring such activities.
On another matter, Nazri said he supported the idea of fielding nine-term Gua Musang MP Tengku Razaleigh Hamzah as the Barisan Nasional in the upcoming Galas by-election in Kelantan.
He also advised Malay rights group Perkasa to stay away from the by-election, following speculation that it might also put up a candidate.
“Currently the Malay votes are split among Umno, PAS and PKR. Any attempt by Perkasa to contest would worsen the situation,” he said.
fr:thestar.com.my/news/story.asp?file=/2010/10/4/nation/7151849&sec=nation
Painter pays price for nephew’s debt
KUALA LUMPUR: A house painter is being hounded by Ah Long for a loan believed to have been taken by his nephew.
The man, his wife and children even had their house set on fire by the Ah Long.
Wong Foo Chin, 58, who lives in Desa Rasah, Seremban, said he woke up at 1.30am to find the front and back portion of his house on fire, his house and car splashed with red paint and the rear windscreen of his son’s car smashed.
“They have destroyed our property and attempted to take our lives,” said a distraught Wong at a press conference yesterday.
Wong, a father of four, believes that the incident, which occurred on Oct 27, is connected to his nephew, Lim Jack Son, 27, who had borrowed money from 12 loan sharks.
He has not been seen for the past three months and is believed to have left the country.
MCA Public Complaints Bureau head Datuk Michael Chong said this was the worst case so far.
“They have attempted to kill this family,” said Chong, adding that he was very unhappy with the police as the victims had lodged two reports but no statements were taken by the investigating officer.
“This is the second time they have been attacked. Their lives are in danger,” said Chong.
The first attack took place on Oct 17 when Wong found his house and car splashed with red paint.
Lim’s parents, who live next door to Wong, have also been continuously harassed by loan sharks.
“My son gave one of these loan sharks a photocopy of my identity card and asked them to recover the money from me,” said Lim’s mother Chong Shue Koon, 60.
She said her son had left her and her husband Lim Loi, 58, a note saying that he owed loan sharks RM170,000, and that he was leaving.
Lim Loi said his son, who works as a bank clerk in Kuala Lumpur, had developed an addiction to gambling last year.
fr:thestar.com.my/news/story.asp?file=/2010/11/9/nation/7388122&sec=nation
Cops: Don’t borrow from loan sharks to finance Sara 1M’sia
Those who are qualified for the Sara 1Malaysia scheme should not borrow from loan sharks to finance their initial investment.
This is the warning from the police, who said that going to Ah Long would land them in trouble.
“This scheme is aimed at helping people with low income.
“But taking a loan from Ah Long will only create problems,” Bukit Aman vice deputy director Senior Asst Comm Abdul Jalil Hassan said yesterday.
He advised the public to instead apply for the Sara 1Malaysia loan provided by the Government.
“There should be no reason to borrow money from illegal sources as the Government has provided proper channels for the people to get the cash needed to invest in the scheme,” he said.
MCA Public Complaints Bureau chief Datuk Micheal Chong said loan application processes should be made easy and hassle-free in order to keep loan sharks at bay.
“Some members of the public may resort to borrowing the RM5,000 initially needed to join the scheme from loan sharks, if the process of obtaining the loan legally is too lengthy or troublesome,” he said yesterday.
Chong, however, added that the scheme was a good move by the Government to help the lower income group.
“This is something which could go a long way in helping the people to save for a rainy day,” he said.
Sara 1Malaysia, with a return on investment of 12% per annum over five years, is a unit trust investment backed by a unique loan incentive with an investment period of five years.
A total of RM500mil has been offered for its funding to 10,000 households.
The implementation of Sara 1Malaysia is a collaboration between PNB, Malaysian Development Holdings Sdn Bhd (MDHSB), Malayan Banking Bhd (Maybank), CIMB Bank Bhd, RHB Bank Bhd and Bank Simpanan Nasional (BSN). fr:thestar.com.my/news/story.asp?file=/2012/1/29/nation/10561522&sec=nation
Restaurant worker conned by Ah Long
A restaurant worker borrowed money from an Ah Long only to find out he was a conman.
The 21-year-old victim, who wished to be only known as Tay, said that he found a flyer on the Ah Long in the mailbox of his house in Setapak on Jan 9.
“I called the company K_LIP Financial Sdn Bhd, and told them that I wanted to borrow RM10,000 with a 24-month repayment period..
“The next day, I received a call from a man called Ah Wei and was asked to pay a fee of RM700 by banking it into an account under what he told me was a lawyer’s name, Lim Jar Leong,” he said at the MCA Public Services and Complaints Department here yesterday.
Tay added that on the same day he deposited another RM1,500 into the same account as legal fees and was told that his initial deposit would be returned together with the RM10,000 loan.
He said that the Ah Long promised to bank in the RM10,000 plus whatever he had already paid within a few days but he had not received anything till now.
Department head Datuk Seri Michael Chong said this is the fourth such case he had heard of and urged the public to be more careful.
fr:thestar.com.my/news/story.asp?file=/2012/2/11/nation/10717798&sec=nation
Single mum harassed by Ah Long over debt of RM90,000
A single mother with three children is living in fear of nine loan sharks after she borrowed about RM90,000 to improve her furniture business.
The 46-year-old woman, who only wanted to be known as Madam Sng, said she and her husband divorced about three years ago and she had borrowed money from the moneylenders to improve her business.
“I did not think I would be harassed by them,” she told a press conference organised by Bagan MCA Youth chief David Chua at the Bagan MCA headquarters in Jalan Kampung Benggali.
Sng said she had to borrow the money to run the business because two of her children were still studying.
“Despite borrowing the money, my business didn’t improve as many of my clients failed to settle their dues after getting their furniture.
“As such, I had difficulties in paying back the money to the moneylenders and I had no choice but to close shop,” she said.
Sng said when she was unable to pay the Ah Long, she started receiving threatening calls from them.
“To date, I have paid more than RM50,000 to all nine of them, but the interest rate is killing me as they charge me 15% every five days,” she said yesterday.
Chua, who is also Bagan Barisan Nasional coordinator, called upon the Ah Long to be more considerate.
He urged them to work out a settlement to get back the principal amount by waiving the interest payment.
Chua also said Sng’s clients who still owed her money should settle their dues to help her pay off her debts.
“Sng is going to start work soon and she wants to settle her debts.
“Hopefully, her former clients will come forward to pay up their dues as this will be of great help to her,” he said.
fr:thestar.com.my/news/story.asp?file=/2012/8/19/nation/11883258&sec=nation
Lorry driver offers kidney for sale to get loan sharks off his back
A man has offered to sell one of his kidneys for RM50,000 to settle his gambling debts even though he has been told it is illegal.
The 45-year-old lorry driver from Ampang, who wanted to be known only as Phuah, said his wife had left him and he had been sacked from his job as lorry driver.
With nowhere to turn, Phuah walked into MCA Public Services and Complaints Department chief Datuk Seri Michael Chong’s office on Wednesday as a last resort.
“I keep on telling him that it is illegal and no doctor in Malaysia will perform this surgery for him.
“If he tries going overseas to do it, the surgeon might even end up taking two kidneys or other organs,” Chong said, still expressing disbelief over audacity of the request.
The man told him he needed the money to pay off a RM5,000 debt incurred after spell of gambling on the Internet.
He’s going to use the rest of the money to start a business.
He had already lost RM30,000 earlier in July when he got carried away playing roulette on the Internet and he had used his life’s savings and borrowings from friends and family to settle that debt.
“What choice do I have?” asked Phuah at a press conference in Chong’s office on Wednesday.
Meanwhile, Chong urged the Government to tighten laws, ensuring that loan sharks do not unfairly target the families of the defaulters.
“I hope the loan sharks get whipping punishment. Jail the borrowers too. It breaks my heart to see the families and defaulters’ children crying in my office because they are so scared of the Ah Long.
“The loan sharks are getting more brazen by the day now that they cannot be arrested under the Emergency Ordinance,” he said.
fr:thestar.com.my/news/story.asp?file=/2012/10/10/nation/20121010185812&sec=nation