KUCHING, Sept 2: What started as a RM2,400 loan turned into a financial nightmare, with a young man and his father paying RM58,700—and still facing demands for more.
In a statement, Stampin MP Chong Chieng Jen said that the victim initially borrowed RM4,000 in early March this year but only received RM2,400 after RM1,600 was deducted upfront as ‘advanced interest’ and administrative fees by the moneylenders.
Struggling to meet the repayment demands, the victim was lured into taking out more loans from other lenders to repay the first debt.
“When he couldn’t pay, the loan sharks contacted his father to threaten payment. Out of fear, the father obliged to settle.
“In total, by the end of August, the father and son had paid a total of RM58,700 to the loan sharks for an initial loan of RM2,400. Yet, some of the loan sharks are still dissatisfied and extort more,” said Chong.
Realising the situation had spiralled out of control, the father and son met Chong this afternoon to seek assistance to lodge a police report against seven moneylenders for alleged criminal intimidation and unlawful collection practices.
Chong, who is also Padungan assemblyman and chairman of the Democratic Action Party (DAP) Sarawak, reassured them that he would follow up on the police investigation.
He also stated that he would seek Bank Negara’s assistance in investigating the accounts used by the loan sharks, which he believed might be mule accounts.
Struggling to meet the repayment demands, the victim was lured into taking out more loans from other lenders to repay the first debt.
“When he couldn’t pay, the loan sharks contacted his father to threaten payment. Out of fear, the father obliged to settle.
“In total, by the end of August, the father and son had paid a total of RM58,700 to the loan sharks for an initial loan of RM2,400. Yet, some of the loan sharks are still dissatisfied and extort more,” said Chong.
Realising the situation had spiralled out of control, the father and son met Chong this afternoon to seek assistance to lodge a police report against seven moneylenders for alleged criminal intimidation and unlawful collection practices.
Chong, who is also Padungan assemblyman and chairman of the Democratic Action Party (DAP) Sarawak, reassured them that he would follow up on the police investigation.
He also stated that he would seek Bank Negara’s assistance in investigating the accounts used by the loan sharks, which he believed might be mule accounts.