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🇲🇾 Malaysia /Crime & Justice

Woman claims RM100,000 loan ballooned to RM162,000 after decade of payments

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • A Malaysian woman claims she has been burdened by debt for over a decade after a RM100,000 loan from a licensed money lender in 2015 ballooned to RM162,000.
  • She states she has already repaid approximately RM140,000 but is still being pursued for a higher amount, with her house facing a caveat since 2020.
  • A local welfare organization has received similar complaints against the same company, alleging exorbitant interest rates and predatory practices.

A Malaysian woman is struggling with a prolonged financial burden, claiming a RM100,000 loan taken in 2015 has escalated to a demand for RM162,000, despite her having repaid around RM140,000.

The loan money was paid long ago. So far, I have paid about RM140,000, but they are still demanding a higher amount.

— FinaThe woman describes her struggle with the escalating loan amount.

Fina, who asked for her full name not be used, stated she borrowed the money to support her family's business. She alleges that upon signing the loan documents, she was made to sign an agreement for RM200,000, significantly higher than the actual loan amount. "The loan money was paid long ago. So far, I have paid about RM140,000, but they are still demanding a higher amount," she said.

I want to settle this debt fairly. I borrowed RM100,000 and I am willing to pay back that amount, but do not ask for an unreasonable payment.

— FinaShe expresses her desire for a fair resolution to her loan.

Her situation has been compounded by her family's business closure and a court case. A caveat placed on her home in Rawang, Selangor, since 2020 prevents her from selling it to settle the remaining debt. Fina sought a two-month payment deferral in March and April due to her mother's medical expenses, only to receive a new demand for RM162,000.

The case faced by this woman is not an isolated incident; there are several other victims who allegedly face similar problems involving the same company.

— Joseph PrakashThe founder of PKIPN highlights that the woman's situation is not unique.

Joseph Prakash, founder of the National Integrity Friendship Welfare Organization (PKIPN), reported that his group has received five similar complaints against the same licensed money lender. He described the company as allegedly charging excessive interest rates and employing pressure tactics. "The case faced by this woman is not an isolated incident; there are several other victims who allegedly face similar problems involving the same company," Prakash stated, vowing to assist victims and urging authorities to investigate the company for alleged violations of licensing terms and unreasonable interest charges.

We want to see appropriate action taken against the company that is accused of violating license conditions and charging unreasonable interest.

— Joseph PrakashHe calls for action against the alleged predatory lending practices.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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