Author: Mohamad Ashaari bin Awab K.B,P.A

Desperate to get money to cover expenses, settle friends' debts, gamble, make investments to get quick profits and business capital are among the reasons or causes that a few people get involved with Ah Long loans. In July 2021, the Police detected a new tactic of an unlicensed money lending syndicate (ah long) that provides an application on mobile phones to make it easier for individuals to make money loans.
However, unbeknownst to borrowers, the risk they will face is very high. Among those risks are;

1. High interest rates: Interest rates for ah long loans in Malaysia can be very high. This means that you have to pay more money as repayment apart from the amount borrowed.
2. Leakage of Personal Data: Referring to the BERNAMA news report on bernama.com published on 7 July 2021, Bukit Aman Commercial Crime Investigation Department Director, Dato' Mohd. Kamarudin stated that his party received three reports from victims who made loans through the application and received various threats including using their photos and personal data after failing to repay the payment. He said that the borrowers who used the application were not aware that they had given permission to the syndicate to access information in the mobile phone such as photos and phone numbers of other individuals. "This syndicate will contact family or friends to make threats if the borrower fails to make the payment. "Most users (borrowers) will not read the conditions stated (when making a loan) and only gave consent to allow them to use the application," he said at a press conference here today.
3. Potential for fraud: There is a huge risk of fraud when it comes to licensed moneylending. It requires you to show personal documents such as a phone bill or driver's license, which can be misused by fraudsters.
   Therefore, before applying for a loan, make sure you do your research and get enough information about the company you want to use to get the loan. You can also refer to the relevant regulatory body to ensure that the chosen company has a valid license. However, the main thing to pay attention to is effective financial management to ensure you don't get involved in financial traps. It is better to contact a counselor or the Credit Counseling and Management Agency (AKPK) to get help with financial guidance.

Date of Input: 27/10/2023 | Updated: 27/10/2023 | ayna