A Malaysian clerk allegedly lost RM2,500 after seeking help from a loan agent who claimed to have connections with banks and could make the loan approval process easier.
However, instead of solving his financial problems, the repeated loan applications allegedly left him facing another issue with his credit record.
The case was shared by financial consultant Azim Mohd Asri and was recently highlighted by mStar after the story circulated on Threads.
Agent allegedly promised an easier loan approval
According to Azim, the clerk had turned to the agent for help with a loan.
The agent allegedly claimed to have a “cable” or connection within banks that could help get the application approved more easily.
Believing the claim, the clerk reportedly paid RM2,500 for the agent’s services. However, Azim said the agent did not actually have special access to any banking system.
Instead, the agent allegedly submitted loan applications manually to multiple banks within a short period of time.
Multiple applications allegedly affected his credit assessment
Azim claimed the repeated applications resulted in several credit checks being carried out within the same month.
He said this eventually affected the clerk’s credit profile, making his financial situation even more difficult.
Generally, banks and other financial institutions may conduct credit checks when someone applies for a new loan or credit facility.
While a single application may not necessarily cause major problems, submitting many applications within a short period of time could raise concerns among lenders about a person’s financial situation or ability to handle additional commitments.
According to CTOS, frequent credit applications within a short period may also be one of the factors lenders consider when assessing a new application.
Monthly commitments reduced by 45%
By the time the clerk sought Azim’s help, he was reportedly close to giving up.
Azim said he later took over the case and helped the client deal with the issues caused by the repeated applications before arranging a debt consolidation process through legitimate banking channels.
According to him, the clerk’s existing debts were successfully restructured within 14 days.
His monthly instalments were also reportedly reduced by 45%, while the client received additional cash that helped him settle outstanding house rent.
Consumers should always verify who they are dealing with and avoid allowing multiple loan applications to be submitted without fully understanding how they may affect future credit assessments.
