In moments of financial strain, the allure of fast, no-questions-asked loans can be hard to resist.
Loan sharks, often operating outside the law, offer seemingly simple solutions, but their terms come with hidden dangers.
Many who turn to these unregulated lenders soon find themselves drowning in escalating debt, facing harassment, and struggling to break free.
How it started: A RM400 loan for nightlife turns into a RM1,500 debt
One such case is that of a 23-year-old Malaysian woman whose desire for a night out spiralled into a massive financial burden.
Chen (transliteration), the woman at the centre of this story, first borrowed RM400 in mid-August to cover her nightlife expenses.
That small loan quickly grew to RM1,500. Though she repaid the amount immediately, the harassment didn’t stop.
Loan sharks continued to hound her for more money, using different phone numbers and threatening to expose her personal and family details on social media if she didn’t comply.
“They kept demanding more money, using different phone numbers to contact me,” Chen shared.
“They even threatened to expose my personal and family information on social media if I didn’t pay.”
Borrowing from eight more loan Sharks
Feeling trapped, Chen turned to eight other loan sharks, borrowing a total of RM5,900 but only receiving RM1,400. One particularly aggressive lender demanded RM1,600 for a RM400 loan, even though she had only received RM200, Nanyang Daily reported.
MCA steps in to negotiate
According to China Press, Chen eventually sought help from Datuk Seri Michael Chong of the MCA (Malaysian Chinese Association) public services and complaints department.
With his assistance, Chen managed to negotiate with seven of the nine loan sharks, repaying RM15,000 with her family’s support.
Including the RM1,500 she had already paid to the first lender, her total debt repayment amounted to RM16,500.
Female loan shark representatives
However, not all the loan sharks were cooperative. One refused to respond, leaving Chen with one unresolved debt.
Chong expressed surprise that all seven representatives from the loan sharks were women, challenging common perceptions of who runs these operations.
