Loan Sharks Stage Fake Funerals to Terrify Borrowers
Loan sharks in Malaysia have escalated their intimidation tactics by organising elaborate mock funerals for debtors who fall behind on repayments. These staged “wakes”, complete with photos of the borrower surrounded by traditional funeral paraphernalia, are then shared online to humiliate and frighten the victims, said MCA Public Services and Complaints Department head Datuk Seri Michael Chong.
One victim, identified only as Tan, discovered an image of himself in a funeral setting, accompanied by curses written on joss sticks and posted on Facebook. The cruel stunt left Tan’s family and friends confused about whether he had actually died, causing him severe emotional distress and social embarrassment. For many in the Chinese community, having a funeral held while still alive is considered an ominous taboo, adding to the psychological torment.
Tan reportedly borrowed RM10,000 in February for his business, repaying RM6,000 before becoming the target of this horrific scare tactic. According to Chong, Tan had previously settled five separate loans amounting to RM50,000, making the funeral stunt even more shocking.
Harassment Extends to Family Members
Another borrower, Chan, has been hounded relentlessly by a man known only as Kai Qiang, suspected of working as a rogue debt collector or “runner” for loan sharks. Despite borrowing RM700 and repaying RM1,000, Chan continues to face intimidation and demands for further payments.
Chong expressed concern that some loan shark runners might be operating independently without their employers’ knowledge, exacerbating the harassment faced by borrowers. “We have a responsibility to expose these rogue individuals,” he said, emphasising that not all lenders are illegitimate, but these unscrupulous practices tarnish the entire industry.
Chan’s case is particularly dire; he had initially borrowed from nine different loan sharks, managing to settle two of the debts independently. For the remaining seven, he has paid RM4,800 out of a total RM12,500 owed, yet continues to receive threats.
Family Driven to Desperation by Loan Shark Threats
In another harrowing incident, a 63-year-old mother from Cheras, Kuek Bee Bee, pleaded publicly for loan sharks to stop harassing her family after her son, Chang Kok Wah, 37, disappeared on June 17. Chang left his mother and relatives to face relentless calls and violent threats, including kidnappings of grandchildren.
Kuek had already paid RM13,000 towards her son’s debts in May, but Chang’s continued borrowing and sudden disappearance left the family vulnerable. The harassment escalated to the point where the family’s home was chained shut with an iron lock and a note listing phone numbers they were instructed to contact. Desperate for safety, Kuek’s family lodged three police reports in June alone.
Rising Number of Loan Shark Cases in Malaysia
Datuk Seri Chong revealed that, as of June, the MCA Public Services and Complaints Department has received 165 cases related to loan sharks, involving a staggering RM18.6 million in outstanding debts. Alarmingly, over 85% of these cases affect the Chinese community, underscoring the widespread nature of the issue.
Ivan Tan, deputy chief of the bureau, stressed the urgent need for stronger legal frameworks to combat the growing menace of illegal moneylending. He called for stricter laws and more robust enforcement to protect vulnerable borrowers from psychological intimidation and financial ruin.
Public Urged to Stay Away from Illegal Lenders
Authorities continue to warn the public against borrowing from illegal moneylenders, or ah long, who often resort to extreme measures like these mock funerals, firebombing, and physical threats. Financial experts recommend seeking assistance through licensed lenders, credit counselling services, or legal avenues rather than resorting to dangerous loan sharks.
Anyone facing harassment from loan sharks is encouraged to report incidents immediately to the police or organisations like the MCA Public Services and Complaints Department for help and protection.