MELAKA: Those who borrowed money from a suspected loan shark here do not need to repay debts totalling about RM300,000 now that he has been arrested.
Melaka Commercial Crime chief Supt E. Sundra Rajan (pic) said the 40-year-old suspect told investigators he was remorseful for his involvement in illegal activities following his arrest on Dec 13.
He also said borrowers, mostly blue-collar employees and housewives, do not need to repay the loans taken from the suspect.
"The suspect regrets intimidating borrowers and has been fully cooperating with my team in an ongoing probe to track networks of unlicensed moneylenders in the state.
"He has lost his mojo to continue as a moneylender since his arrest," he said here on Sunday (Dec 20).
Melaka police discovered 626 documents relating to illegal loans after raiding the suspect's house in Taman Cheng Perdana here at 9am on Dec 13.
Supt Sundra said the loans totalled about RM300,000, mostly from borrowers in the Melaka Tengah district.
Supt Sundra said the suspect used many forms of scare tactics to collect debts but did not resort to splashing paint on borrowers' properties.
On Sept 17, Melaka deputy police chief Senior Asst Comm Datuk Sharul Lalli Masduki said police confiscated RM15,000 in cash, five mobile phones, 52 bank books and a car from the suspect during the raid.
He said the suspect is believed to have been active since 2016.
The suspect is being investigated under Section 5(2) Moneylenders Act 1951 and could face up to a RM1mil fine or five years' jail, or both, upon conviction.
The suspect is currently under remand which ends Sunday (Dec 20) and he is expected to be charged soon.