Companies that provide short-term consumer loans at high interest rates are on the increase in countries like Indonesia and the Philippines as many people struggle to get advances through traditional channels such as banks.
PETALING JAYA: The Malaysia Co-operative Societies Commission will investigate allegations that certain co-operatives are involved in a syndicated loan scam, falsifying payslips for civil servants and employees of government-linked companies.
The commission said in a statement that stern action would be taken on the individuals and co-operatives involved if the allegations were found to be true.
“Such things should not happen as all registered co-operatives, particularly credit co-operatives, are bound to the laws and rules set by the commission to ensure there is no exploitation of members,” it said.
It said it viewed seriously the statement issued by Thuraisingham Shan, who is Uruskop (Entrepreneur and Islamic Management of Malaysia’s Association) honorary secretary and Co-operative and Management Consultant adviser, on the matter.
It was reported that the loan scam, which allegedly involves the Malaysian National Co-operative Movement (Angkasa) and various individual co-operatives, is gaining traction and is currently being investigated.
The scams reportedly also involve loan payouts of only 50% of the amount that was applied for by civil servants with even their ATM cards being confiscated.
Members who have been affected by the scam can report to the commission via the WhatsApp hotline at 019-244 5339.
