879) THE STAR 15/8/13-‘Trojan horse’ helps debtors escape loan sharks’ wrath
04 Sep 2013
MALACCA: In a bid to
help victims who fall for attractive packages offered by loan sharks, a
consumer association is employing a “Trojan horse” tactic to allow debtors to
pay back only the principal amount.
Malaysian Muslim
Consumer Association (PPIM) chief activist Datuk Nadzim Johan revealed that
some victims had approached them for help after they were harassed and
intimidated by thugs engaged by illegal money lenders.
He claimed that the
loan sharks had started offering the packages since April and they used the
Hari Raya season to lure the borrowers by ensuring that loans were doled out
swiftly without having to put up collateral.
“The Trojan horse
was used by the Greek army to destroy the city of Troy. Our tactic, which came
about this year, was effective when all the loan sharks agreed to forgo
preposterous interest rates and agreed to the borrowers repaying the principal
after the Hari Raya celebrations,” said Nadzim.
Asked how the tactic
worked, Nadzim declined to divulge his team’s strategies, saying “we gave them
(loan sharks) a taste of their own medicine subtly”.
He revealed that
there were no high-handed tactics employed when negotiating with loan sharks
and that his team utilised “psychological warfare” so that the loan sharks were
left no choice but to agree to PPIM’s terms and conditions.
Nadzim said PPIM was
forced to help these individuals after an escalating number of them were in the
doldrums after borrowing money to celebrate Hari Raya.
He revealed that
each of the 2,200 debtors owed between two and three loan sharks simultaneously
as they were compelled to borrow from one to settle another when the quantum
multiplies.
Most of the victims
who sought their help were civil servants, he said.
Nadzim said that
many of the debtors lost their houses and cars, besides going into debt to stop
the threats from illegal money lenders.
“We have cases where
senior citizens aged over 70 years who were also threatened by loan sharks.”
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