Portal in pilot stage, will involve moneylender-borrower transactions
A NEW digital portal is being developed to record and monitor transactions between licensed moneylenders and borrowers in real time, in a move to enhance transparency and consumer protection, says Datuk Aiman Athirah Sabu (pic).
The Deputy Housing and Local Government Minister said the platform, currently in the pilot project stage, will serve as a central data repository system to improve regulatory oversight under the Moneylenders Act 1951.
“At present, the ministry is finalising a pilot project proposal to develop a platform or data repository system for both borrowers and licensed moneylenders, which will be able to record loan transactions in real time,” she told M. Prabakaran (PH-Batu).
Aiman Athirah said the system will include monitoring and digital payment features to strengthen regulatory control over licensed moneylenders.
“At the same time, it will ensure that no additional charges are imposed on members of the public who wish to obtain loans from these licensed companies.
“For now, the proposal is being finalised. From the aspect of borrower protection, the system will also be equipped with a loan insurance protection scheme to provide coverage for eligible borrowers,” she added.
She said to prevent excessive charges by licensed moneylenders, a control mechanism has been created under subsection 17A(1) of the Moneylenders Act 1951, which stipulates that interest rates for loans.
“For secured loans, the interest rate shall not exceed 12% per annum or 1.0% per month while for unsecured loans, the interest rate shall not exceed 18% per annum or 1.5% per month,” she said.
She warned that any licensed money lending company that charges interest rates above the permitted limit or imposes interest exceeding the principal loan amount may be subject to action under Section 17A of the Act, where the money lenders can be fined up to RM20,000 or jailed up to 18 months, or both.
“Section 23 of the Moneylenders Act 195 also prohibits licensed moneylenders from imposing any loan-related charges on borrowers, except for stamp duty costs and attestation fees as stated in the prescribed loan agreement format under the Act.”
Aiman Athirah also urged the public to remain vigilant and aware of their rights as borrowers to avoid becoming victims of irresponsible parties during the transaction process.
The licensing status of companies can be verified through the i-KrediKom application for Peninsular Malaysia, or by obtaining confirmation from the licensed moneylenders (PPW) licensing authority in Sarawak, Sabah and the Federal Territory of Labuan, explained the deputy minister.
“Any complaints regarding violations of the Moneylenders Act 1951 can be submitted to the ministry through the Public Complaints Management System (SISPAA) at https://kpkt.spab.gov.my for investigation and further legal action,” she said.
The ministry, she added, has also set up a public complaints counter on Level 22 of its headquarters to assist the public who wish to lodge complaints related to licensed money lending companies.
