MALACCA: Desperate parents from the lower income group are borrowing from loan sharks to buy school essentials.
Barisan Nasional social service centre (Pembela) director Amir Hamzah Aziz said between March and April, 70% of loan shark victims he handled were parents who borrowed for their children’s schooling expenses.
He said it is distressing that those who took loans for small amounts from the loan sharks were forced to pay high interest on a weekly basis.
“They have been duped by pamphlets stating the interest would be low but eventually ended up paying more,” he said after attending an event where Lions Club of Tanjung Bidara president Chew Chert Fong and Axis Eyewear Group operations manager Dannie Tan See Liang handed over spectacle vouchers to 30 students at SkyDeli restaurant here.
Hamzah said instead of making do, these parents wanted to give the best “back-to-school” items to their children, adding these loan sharks would advertise their services at bus stops and other public areas.
“The loans sharks’ agents will then arrange an appointment to meet the borrower before deducting a big sum as processing fees,” he said.
Hamzah noted the loans sharks used different modus operandi to prey on their victims.
“Borrowers are also partially at fault for taking loans despite knowing the consequences,” he added.