Debt col­lec­tors’ new scare tac­tic

> Loan de­fault­ers is­sued fake court let­ters, de­famed on so­cial me­dia

The Sun (Malaysia) - - NEWS WITHOUT BORDERS - BY CHARLES RAMENDRAN

PETALING JAYA: To re­cover old debts, un­scrupu­lous debt col­lec­tors are turn­ing to a new tac­tic of in­still­ing fear in loan de­fault­ers by is­su­ing fake court let­ters and slan­der­ing them on so­cial me­dia sites such as Face­book.

theSun learnt of this fol­low­ing a let­ter sup­pos­edly from a debt col­lec­tion com­pany here that went vi­ral on so­cial me­dia.

The let­ter ad­dressed to a woman in Kota Kin­a­balu had stated that a war­rant of ar­rest had been is­sued against her and will be served on her for fail­ing to meet the de­mands of the com­pany’s client and she would have to ap­pear in court.

Nu­mer­ous at­tempts by theSun to con­tact two tele­phone num­bers stated in the let­ter for clar­i­fi­ca­tion were fu­tile as they went unan­swered.

K. A. Ramu, a se­nior lawyer who was shown the let­ter, was of the opin­ion that the doc­u­ment was not au­then­tic and had no le­gal­ity.

He said any such no­tice should come from a law firm and those who re­ceive such let­ters should carry out checks for the ex­is­tence of such a com­pany and also with the Bar Coun­cil be­fore re­port­ing the mat­ter to the rel­e­vant au­thor­i­ties.

He said they may also check with the courts to ver­ify if the no­tice is fake.

MCA Pub­lic Ser­vices and Com­plaints Depart­ment head Datuk Seri Michael Chong, who also looked at the let­ter and con­sulted his panel of lawyers, said it was a scam.

He said to ob­tain an ar­rest war­rant and ex­e­cute it over a civil mat­ter is a long process and not a sim­ple pro­ce­dure.

He said crooked debt-col­lec­tors of­ten come up with a new ruse in re­cov­er­ing bad debts.

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