Loan sharks now target flat residents

Many residents of low-cost flats are falling prey to loan sharks, who are now promoting their services at PPR housing schemes.

PETALING JAYA: Loan sharks are now targeting residents in low-cost flats and many are falling prey to these illegal monylenders despite knowing the consequences should they fail to repay the debts.

Section 4 PPR Kota Damansara resident Sharmila Ratnam, 35, said the flat dwellers who had been denied bank loans and had no other options were turning to loan sharks.

Sharmila said she had been receiving flyers and name cards from loan sharks daily.

The housewife said the loan sharks would target vulnerable residents and often used force to get their money back.

“These are people who cannot speak up and have no where to turn to. The loan sharks know that these customers will not fight back,” she added.

Sharmila said the loan sharks would even go to the extent of dropping flyers at the doorstep of every home in the block.

“Banks do not release loans to these residents either because they are blacklisted or do not qualify.

“With the increase in the cost of living, some even borrow a low as RM500 to buy groceries and pay utility bills,” she said.

Another resident, a factory operator, said she borrowed money from a loan shark to pay for her bank loan for a house she bought elsewhere.

She said she was now in debts as her whole salary was used to service the loan from the loan shark.

“My ATM card is kept by the the loan shark and they withdraw my salary at the beginning of the month and do not leave any balance for my survival,” said the mother of five.

She said her friends and relatives advised her not to borrow from loan sharks, but she did not have any other options. She and her children were now supported by her eldest son-in-law.

Another resident, who is medically boarded out and receives Sosco aid, said if the government was willing to give microcredit loans, no one would opt to borrow from loan sharks.

“We read in the newspapers and hear every day on the cries of the victims who are harassed by loan sharks. Given a choice, no one wants to borrow money from them,” he said.

He added that financial institutions and the government could look into microcredit facilities to those who were in dire financial need.

A loan shark’s debt collector said they targeted residents at low-cost flats because it was easier to pressure them.

“These people do not retaliate due to their lack of education and resources. Loan sharks often find it easier to harass them as they seldom turn to the authorities,” he told FMT.

He said the loan sharks worked hand-in-hand with the police and would know the person who made the police report, leading to further harassment.

He added that even if the customers moved elsewhere, the loan sharks would know the new address from the police report lodged.

The debt collector said his team would collect money from about from customers a day and warn stubborn customers who did not want to repay their loans.

“Paint splashed on the cars and houses are warnings to the customers,” he said.

The 26-year-old debt collector had been working with the loan shark for eight years and enjoys a good salary and other privileges.

He said although some customers received bonuses or got promoted they still refused to service the loans.

He added that in such situations the loan sharks would splash paint on the cars and homes.

The debt collector said besides dropping flyers at homes and letterboxes, he also waited at hospital mortuaries and accident areas to promote the services.

“Family members of the deceased and those involved in accidents usually do not have the money, so we extend our loan services to them,” he added.