Ah Longs’ new ruse to bait borrowers

AH LONG (loan sharks) are using a new ploy to make sure they squeeze every sen out of their borrowers.

The ruse: no interest on loans settled within 10 days from the date of borrowing.

The catch? The Ah Long will disappear for 10 days only to dispatch their “machai”(runners) on the 11th day to collect the money given out plus interest at 10% a day.

According to a report in Oriental Daily News yesterday, a number of illegal money lenders have come up with this “Interest free if you can pay back the amount borrowed in 10 days” special loan package to entice people who need quick cash.

However, this so-called “special offer” is just the loan sharks’ latest trick to get potential borrowers entrapped.

A sources told the daily that to prevent borrowers from knocking on their doors within the 10-day loan period, these Ah Long do not provide any addresses and would meet potential borrowers in public places, adding that the minimum amount of loan is RM5,000.

The source said the interest rate of 10% a day is calculated from the day the loan is disbursed.

“If you borrowed RM10,000 and failed to pay up within 10 days, you will owe the Ah Long RM21,000 on the 11th day.”

These loan sharks would go after their debtors on the 11th day and harass them until the money owed is fully settled, said the source.

A senior police officer from Bukit Aman told the daily police have yet to receive any report against Ah Long over this dirty trick but did not discount the likelihood that it is being used by illegal money lenders.