Readers ask: How To Deal With Loan Sharks In Malaysia?

How do you deal with a loan shark?

If you’re being harassed Any lender, licensed or unlicensed, who harasses you is breaking the law. You should report any loan shark to your local your local Trading Standards office and to the police if the loan shark threatens you or uses violence.

Are loan sharks legal in Malaysia?

Loan sharks or ‘Along’ as they are popularly known amongst Malaysians, are illegal money lenders that usually target the desperate and the poor.

How do I contact loan sharks?

Complete the secure form below and we’ll call you back for more information at a time to suit you. Emails are monitored between 8.00am and 6.00pm Monday to Friday. If you need to report a loan shark urgently please call our helpline on 0300 555 2222 where someone is always available to talk to you.

Why is loan shark illegal?

Loans from loan sharks charge interest rates far above any regulated rate. These lenders may also often call on the debt to be repaid at any time, using violence as a means of forcing repayment. In most cases business dealings with a loan shark are illegal; it is best to seek other alternatives.

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Do loan sharks make a lot of money?

Interest and Fees Loan sharks sometimes loan large amounts of money, but more often, they lend modest amounts. Because they operate with smaller loans compared to banks and other legitimate lenders, they try to earn more by jacking up your interest rate. Loan sharks also add fees whenever they like.

Is money lender legal in Malaysia?

Bank Negara Malaysia does not issue money lending licences. Money lending business is governed under the Moneylenders Act 1951 and administered by the Ministry of Urban Wellbeing, Housing and Local Government.

How do I fight loan shark harassment?

Report Them To The Authorities If you feel you or anybody you know has worked with a loan shark, you can call the X-Ah Long hotline at 1800-924-5664. Alternatively, you can file a complaint with the Registry of Moneylenders at 1800-2255-529.

Is interest legal in Malaysia?

First things first: Are Friendly Loan Agreements legal? Yes, Friendly Loan Agreements are legal in Malaysia. Parties are allowed to give out loans, and even charge interest on the loan, as long as the lender is not carrying out money lending ‘as a business’.

Is it illegal to lend money?

Legality. No state or federal law makes it illegal to lend money. While there are many laws that apply to institutional lenders and other businesses that loan money or provide loans or credit, you have the right to lend other people money as you wish. You can, for example, lend your sibling money to buy a new car.

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What can I do if I have no money?

31 Things To Do When You Have No Money

  1. Join a contest like a beauty contest or fitness contest.
  2. Baby-sit a child.
  3. Perform in the street.
  4. Join a carnival or any free festivals.
  5. Take a video to put on YouTube.
  6. Sell your old stuff.
  7. Build A Mobile App.
  8. Grab your camera and take photos around.

Is going to a loan shark illegal?

A loan shark usually has lots of customers and lends money like a business, but their lending is illegal. Loan sharks often take other illegal action to collect the money they’ve lent you, such as threatening violence or taking away your credit cards or valuables.

What type of crime is loan sharking?

In most jurisdictions Usury laws regulate the charging of interest rates. Loan sharking violates these laws, and in many states it is punishable as a criminal offense. The usual penalty imposed is a fine, imprisonment or both.

Why is it called a loan shark?

A loan shark is a person that sells loans with very high interest rates. Loan sharks are called ‘loan sharks’ because they are like sharks; aggressive, angry, and greedy. They can do many illegal things to just get repayment, like kidnapping or even killing.

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