879) THE STAR 15/8/13-'Trojan horse' helps debtors escape loan sharks' wrath

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.”

He added that many found it hard to settle their loans as illegal moneylenders’ compound interest rates surge with added penalties for late payments and can end up being 150% a year.

Sumber: http://www.thestar.com.my/News/Community/2013/08/15/Pay-principal-amount-only-Trojan-horse-helps-debtors-escape-loan-sharks-wrath.aspx