BATU PAHAT – Community credit companies acting as Ah Long (illegal money lender) when dealing with borrowers will face stern action, including having their operating licences revoked.
Housing and Local Government Minister Datuk Zuraida Kamaruddin said such companies have been allowed to operate from June 23, and are valid entities under the law to issue loans.
“(We) are not encouraging the taking out of loans, but it is… a necessity. To date, our record shows that no community credit company has deviated in terms of operation.
“We will withdraw its licence if there is a report that it is behaving like Ah Long. We will stop its operation.”
Zuraida said the government wants to protect borrowers, especially those who have no other option.
“Why allow the credit community to operate during the third movement control order? This is because we want to protect the borrowers who want to borrow RM300, RM500 to set up a nasi lemak stall, (for example).
“They have no place from which to borrow. They cannot borrow from banks as they do not qualify… so some go to Ah Long.
“There are laws under community credit, the borrowers are protected by the laws,” she said, adding that if borrowers default or are late in paying their loans, the laws will give them time to settle the outstanding payment.
Until May 31, the number of licensed community credit companies nationwide stood at 4,972, of which 3,226 licences have been issued by the ministry registrar, while 1,566 by the deputy registrar in Sabah, Sarawak and Labuan. – Bernama, June 27, 2021
