KUALA LUMPUR: The phone rings, showing an unlisted number. Afiza (not her real name) does not pick up her phone. The phone falls silent, only to ring again after a few minutes.
The likely caller is"John”, a loan shark or Ah Long who loaned her RM10,000 to ease her Covid-19-related financial problems.The 28-year-old mother-of-two was harassed, threatened and shamed earlier when she could not repay her loan on time. When she finally paid off her debt, she thought it was over. But the calls continued.
Non-governmental organisations such as the Muslim Consumer Association Malaysia reported in 2021 that they had been receiving about 25 new cases each day of loan shark victims asking for help, a 30% increase compared with before the pandemic. "You can never get rid of loan sharks,” said a former loan shark, who asked to be identified as Guy, likening moneylending to a service.
"Given that these loans are provided to borrowers without collateral and minimal supporting documentation, the interest is expectedly high. This can escalate astronomically should non-payment or late payment occur during the repayment period,” he said. "I once lent RM2mil but it was to a somebody, a 'Datuk'. He paid back but by the time he paid back, it was RM5,6mil already,” he said.
But, as an employee, he had referred difficult cases - that is, those who refused or could not pay - to the"enforcers”. According to news reports, some of the things they would do to force the debtors to pay up were splashing red paint on their homes and beating them up. She filed a police report and paid her debt. Now, on top of other loan offers, she is getting calls and messages from the moneylenders promising her that her family would be safe and that she would be paid RM2,000 if she withdrew her police report.In the old days, moneylending offers were usually printed on flyers posted on public notice boards or pillars. Nowadays, they can also be found on social media, where most of their targets are.
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