If you’re going through a tough time financially, the Housing and Local Government Ministry has a clear message which is to not fall into the trap of illegal moneylenders.
Minister Nga Kor Ming is urging everyone especially those struggling to stay away from Ah Longs and instead go through proper, licensed channels for loans.
He reminded the public that licensed lenders have to follow strict rules, including limits on how much interest they can charge. More importantly, they’re not allowed to harass you at home or work. If they do, you should report them right away to the ministry or the police.
This warning comes after a fire in Taman Tasek Gelugor Utama, which may have been linked to loan shark activity. The ministry is taking this seriously and wants to protect people from getting caught in a dangerous cycle of debt, threats, and violence.
Nga said Section 29(B) of Act 400 prohibits licensed moneylenders or their representatives from going to borrowers’ homes or workplaces to collect repayments or to intimidate them.
“In the event of a violation of this provision, the public is urged to immediately lodge a report with the ministry or the police so that appropriate action can be taken against those involved.”
Nga also advised the public to check the status of moneylenders via the i-Kredikom application or by contacting the ministry to ensure they were licensed and registered.
“Ah Long or illegal moneylenders often take advantage of individuals who are desperate due to financial hardship by trapping them in a vicious cycle of debt through exorbitant interest rates, harassment and violence,” he added.
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This post first appeared on WORLD OF BUZZ.