KUALA LUMPUR: Those who wish to borrow money from loan sharks are now told to put their cars up as collateral with ownership changing hands if they falter in their repayments, says Bukit Aman.
Federal Commercial Crime Investigation Department director Comm Datuk Seri Ramli Mohamed Yoosuf said police had detected the new tactic after a raid at an office unit in Sungai Besi.
“We found the syndicate required loan applicants to transfer ownership of their vehicles before receiving the loan, with the vehicles serving as collateral.
“Borrowers were also obliged to pay extra fees for ownership transfer and installation of a GPS tracker,” he said adding that they were also required to sign an agreement letter concerning the selling and renting of the vehicle.
If borrowers defaulted on repayments, ownership of the car would be transferred to the syndicate, Comm Ramli told a press conference yesterday.
