Many bullied by legal 'Ah Longs'
Published on: Thursday, May 19, 2016
Kota Kinabalu: Many Sabahans who borrow money from licensed money-lending companies are not aware that they are being manipulated because they do not know their rights when borrowing money.Kuala Lumpur Consumer Safety Association President Samsudin Mohamad Fauzi said the problem is very worrying, especially in Sabah where many public servants are also borrowing money from these companies."Consumers or borrowers in the State are always shadowed by Ah Long whenever they deal with these companies although they are not actually Ah Long. But we cannot blame the consumers also because in my experience when solving complaints in Semporna, Kota Kinabalu, Tawau, Lahad Datu and other districts, most of these companies act like Ah Long (illegal money lenders).
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"They did many things that intimidated the consumers which are totally wrong and should not have been done by them. They will go to the consumers' office or homes if the latter failed to pay or when their ATM cards were cancelled," he said in a statement.In all cases, he said, borrowers' ATM cards will be held by the companies as part of the agreement and the companies will do the withdrawals from the borrowers' accounts on pay day.Even worse, he said, borrowers would be forced or influenced to sign documents where the amount of the loan was not filled in and later, the company will write any number they like in order to make more profit.
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Usually, borrowers will have no other choice but to relent because otherwise, they will not get the loan."Although they knew this practice is wrong, the existing laws do not affect them because for them, all problems can be solved with money and the influence of some people. The same problem happens all over the country, not just in Sabah.
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"However, Sabahans and Sarawakians must be given specific attention because of problems obtaining information and many are ashamed of their own financial difficulties," he said.Samsudin highlighted some of the laws that govern the rights of the consumers such as the rights of borrower to obtain a copy of the loan agreement, that lender cannot enforce any document or agreement relating to the loan if the agreement is incomplete and not sent to the borrower, lender cannot appoint debt-collector who would go to the borrower's house or office even if the intention is to hand over a notice and lender cannot charge interest more than 18 per cent per annum for unsecured loans and 12 per cent per annum for secured loans.Therefore, said Samsudin, as a smart consumer, one needs to know his or her rights and should not be scared of any threats made by these companies.He also hoped that the government can do something about the increasingly serious problem.Stay up-to-date by following Daily Express’s Telegram channel.
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