KUCHING: The public should refrain from applying for so-called easy and readily available loans offered online, regardless of how desperate they are for cash.
The advice comes from Sarawak United People’s Party (SUPP) Public Complaints Bureau chief Milton Foo after a local businesswoman, aged 40, fell victim to an online loan scam that resulted in her paying over RM60,000 in interest charges on a debt of RM32,000.
“This is the dark nature of online loan scams; you can never fully pay off your debts as it just keeps piling up.
“It is worse than dealing with Ah Longs. I can’t stress this enough that people should avoid falling victim to these online loan scams.
“Once you are in, there is no turning back,” he said during a press conference at the SUPP Public Complaints Bureau office yesterday (Sept 26).
Foo said he had consistently advised the public against opting for online loans, even when advertisements claimed low interest rates or collateral-free loans.
“When you apply, this is what you get at the end of the day.
“In an instance, this victim (businesswoman) borrowed RM600 but had to repay RM300 in interest 16 times,” he said.
He also urged the authorities, especially the police, to conduct a thorough investigation to ensure the safety and security of the victim and her family.
Earlier, the businesswoman turned to online loans to get financial support for her struggling business which was affected by the Covid-19 pandemic.
Apart from facing the ordeal of paying RM60,000 in interest charges, she and her family were also harassed and threatened by individuals.
Her involvement with the online loan scam began when she clicked on an advertisement on Facebook in May.
