A COUPLE who previously lived next door to us, their two-year-old toddler and their maid were kindly told to leave their rented house after being three months behind in rental.
We were told of the bad news by the maid who used to help us wash our clothes at times. Like the couple, she also comes from Simanggang.
Despite earning a very decent income – both are educationists with teaching degrees – they once confided to my wife (who is also a teacher) that a sizeable portion of their monthly income was taken by a third party, namely, licensed moneylenders.
I see it vital to take a peek at their problem because it may reflect the very thing that confronts a lot of families. It has become a bane for some of our friends’ lives.
What the husband wasn’t aware of was the fact that his wife spent – and lost – a lot on online gambling. And what the wife wasn’t privy to was that her hubby, who taught in another school, also had his own hobby, namely playing “holo” (three dice game) with his own group without the wife’s knowledge. He confided to me about his involvement in this circa June 2023.
They moved from our area in May this year. It was such a sad moment as they were very kind and respectful and had been sharing food and gifts with us.
This predicament with moneylenders has led to additional tasks for staff of the National Registration Department (NRD) in that many couples are called for counselling before their petitions for divorce are finalised.
“This year has seen a remarkable increase in petitions for divorce,” said a senior officer in the department, adding that a big portion of the divorces had to do with financial problems, mostly attributed to gambling and money lending matters.
An old friend, who spoke on condition of anonymity, told me that he had personally counselled no less than six couples whose marriages broke down due to problems with moneylenders.
“They told me that they had no choice but to borrow money from moneylenders who charged interest of between 10 and 20 per cent monthly on the principal sum owed.
“Their salaries are withdrawn by their creditors using their ATM cards, giving them only the balance after deducting the agreed monthly payment plus the appropriate interest,” he said, adding that the ATMs were held by the moneylending companies.
Since a few years ago, the Kuching City South Council (MBKS) has been getting tough on money lending by tearing and removing posters as well as banners put up by licensed moneylenders in its areas of jurisdiction.
However, despite some initial successes, there seems to be more moneylending companies coming up.
These companies also put up advertisements in the local dailies, including the Bahasa Malaysia editions. They use very catchy headlines such as ‘Fast Approval Personal Loan – No Guarantor & Collateral’ and ‘Pinjaman Wang Segera – Proses Mudah Dan Laju’. Some say that approval from their companies would take no more than two hours.
“This fast approval is the plus factor for the money lending companies. They do not require any collateral. Customers only need to bring their payslips and bankcards (ATMs) as well as photocopies of their MyKads,” said the senior NRD man, adding that due to the easy and fast approval, more people were lining up to apply for loans from these companies.
“So while the companies are laughing all the way to the banks, the borrowers are suffering in silence,” he said.
Another source said the borrowers were naturally reluctant to share their predicament with a third party unless forced to. He therefore concurred with my old friend, the NRD officer, that they (the borrowers) were the victims who suffered in silence.
In this case, are these licensed moneylenders actually doing a helping service to the community or do they exist to add more problems? I agree that any business entity is entitled to gain profit as long as it is legitimately earned. In this moneylending business, though licensed, their system of charging high interests is certainly something to frown upon.
To borrow or not to borrow is the question that is so difficult to answer though it involves a ‘yes’ or a ‘no’. People borrow for various reasons but there are actually those who are desperately in need of cash to buy food for immediate consumption.
There are also motorists who need cash to get fuel for their vehicles. As such these people have no choice but to source immediate funds for such needs. This is where moneylenders come in handy and people initially feel grateful for their existence.
In this case, they fulfil the immediate needs of clients but in the long run, they suck. The clients’ vulnerability lies in their urgency in sourcing funds for their immediate needs, particularly laying food on the table and making sure their cars do not run out of gas. This is where people are so grateful for their services.
They may seem less intimidating than the unlicensed loan sharks but the ferocity of their sting is similarly ruthless. There had been cases whereby gangsters and thugs employed by these moneylenders came over to harass defaulting borrowers at the latter’s premises, a retired police assistant superintendent said.
Of course, there are banks which do offer loans at reasonable interest but these institutions require all sorts of documents and collateral which customers find difficult to fulfil. So the moneylending companies are the immediate solutions and these firms thrive and are laughing all the way to the banks.
If you are put in such a situation, would it take you long to decide on the ‘yes’ or ‘no’ answer? What say you, my dear readers?
DISCLAIMER:
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at tawisalok@yahoo.com.
