It’s been eons since anything new has been put onto this blog — and I thought it be a good time to post something and start off with a bang!
Chance upon this article in TODAY (syndicated article from The Star, yes the M’sia paper) — and my thoughts were “Wow… why didn’t I think of that…! One-up on Wall-Street! Eh… that’s quite nasty of these loansharks…”
GEORGE TOWN – Malaysian loan sharks have found a simpler and hassle free way to do business – they use credit cards to issue money to borrowers, take their cut via interest, and then leave the banks to collect the debt.
Under a new modus operandi, loan sharks set up bogus companies, then pose as legitimate merchants.
Under the pretence of a commercial purchase, they swipe the customer’s credit card for the loaned amount plus the interest, reported The Star.
State Commercial Crime Investigation Department chief Assistant Commissioner Roslee Chik explained: “For instance, if a customer wants RM4,000 ($1,632), they will swipe his credit card for RM4,200, including interest.
“The payment is supposedly for the purchase of items such as a refrigerator.
“When the bank calls up the customer to confirm the purchase, he will confirm it”.
ACP Roslee said the new tactic was hassle free for loan sharks as the banks now have to go after the debtors.
“They get the money from the banks, which, in turn, will need to go after the debtors.”
He revealed that two raids last month on loan sharks revealed their modus operandi.
He urged banks that saw any transaction as being suspect to contact the police.
Loan sharks can be charged for fraud while the card holder could be charged for abetting the merchant.
“Furthermore, they will have to pay interest to the loan sharks and the bank, as they will also be charged interest when they can’t pay before the due date,” he said.
