KUCHING: Michael Kong warned the public about the dangers of borrowing from unlicensed moneylenders following a case of harassment reported to him recently.
Kong said he was approached by Mdm Tiong, whose sister had been borrowing from unlicensed moneylenders since January this year. Despite the family settling her debts several times, she continued borrowing more money to sustain her lifestyle.
“The family is now living in fear as some of these moneylenders have begun threatening their safety,” Kong revealed.
“We have advised them to lodge a police report immediately and are exploring the possibility of negotiating a lump-sum settlement without further interest charges.”
Kong stressed that the bigger challenge was ensuring the borrower did not fall back into the cycle of debt.
“It is vital for her, and for all members of the public, to understand the serious dangers of borrowing from unlicensed moneylenders,” he said.
“Illegal lenders impose exorbitant interest rates and often resort to harassment, threats, and intimidation.”
He urged those facing financial difficulties to turn instead to licensed financial institutions, government agencies, or credit counselling services that can provide proper and legal solutions.