Illegal $-lending adverts in Sabah under control
Published on: Thursday, June 30, 2016
Putatan: The putting up illegal money lending advertisements in Sabah is still under control, said Moneylenders and Pawnbrokers Division Sabah branch Enforcement Unit head Supt. Mohd Noor bin Mohamad.The division comes under the jurisdiction of the Urban Wellbeing, Housing and Local Government Ministry.This is because, he said those advertisements in the form of buntings, posters, and flyers are normally put up in public areas and placed indiscriminately everywhere.ADVERTISEMENT Mohd Noor said the moneylenders would put up or stick the advertisements offering moneylending services without obtaining permits from the relevant authorities on electricity and telephone poles, walls and doors of commercial shoplots, residential gates, signboards, trees, bus stands and power substations, among others."Public must know that anyone including registered moneylenders or illegal moneylenders must get permit approval from relevant authorities as required under the Moneylending Act 1951 and Rule 6, Moneylenders Regulations (Control and Licensing) 2003."Failure to apply permits for the advertisements is an offence under Section 11(2) of the Moneylending Act 1951 that carries a maximum fine of RM10,000 or a jail term up to 12 months or both, upon conviction."However, the display of illegal advertisements on moneylending services in the State has not reached an alarming level," he said.ADVERTISEMENT Mohd Noor said this in a press conference after conducting an integrated 'Ops Carik' to remove illegal moneylending advertisements here.They seized a total of 327 advertisements without permits in the form of buntings, posters, and flyers from Taman Jumbo, Petagas, and nearby residential areas up to One Place Mall as well as at Servay and Giant Supermarket areas.
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A total of 20 enforcement officers from the division together with enforcement personnel and officers of Putatan District Council were involved in the operation from 8.30am until 10am.'Ops Carik' is a continuous operation by the Urban Wellbeing, Housing and Local Government Ministry to be held from time to time in all districts in Sabah and Labuan."It is easy for public to differentiate whether the moneylending advertisements are illegal or not by looking for the licensing number of the moneylenders, validity date of the licence, the advertisement permit number, the name of the registered moneylenders, their address and telephone number as well as the offered interest rates."Nonetheless, I would like to remind the public not to be easily influenced by these illegal advertisements because the moneylenders who offer these services are normally the 'Ah Longs' or non-registered moneylenders who impose exorbitant interest rates on borrowers."But if people still want to borrow, it is advisable for them to apply for loans from licensed financial institutions or registered moneylenders as these are regulated," Mohd Noor said.For licensed moneylenders, he said the borrowers must fill up a form to apply for loans, provide recent salary slips, photocopy of the identity card, must have stamp duty and witnessed by the Commissioner of Oath, unlike the 'Ah Long' services that do not require such procedures.According to him, the division has also referred all telephone numbers displayed on the illegal advertisements to the Malaysian Communications and Multimedia Commission (MCMC) to be cancelled.He said it is difficult to trace the real owners as the names registered on the telephone numbers are usually those individuals who have passed away or illegal immigrants.To a question, Mohd Noor said the common practice of borrowers giving their ATM bankcards to registered moneylenders is not an offence if both parties have agreed to such arrangement in writing.On the number of registered moneylenders, he said there are over 600 licensed moneylenders in Sabah and Labuan.Stay up-to-date by following Daily Express’s Telegram channel.
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"Anyone wishing to set up moneylending businesses must apply for the licence at the State Finance Ministry and monitoring and enforcement would be carried out by us from the Moneylenders and Pawnbrokers Division Sabah branch here."The Moneylending Act 1951 is being used nationwide against moneylenders either illegal or registered for any breach of the provisions, rules and regulations," he said.