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KUALA LUMPUR: Licensed moneylenders are now behaving like their illegal counterparts, commonly called Ah Longs, by using strong-arm tactics against defaulters.

MCA Public Services and Complaints Department head Datuk Michael Chong said some of these moneylenders or their employees had gone overboard when asking for repayment from their borrowers.

“They have been harassing the borrowers' family members who have nothing to do with the debts while some go after the borrowers after the money is returned,” he said at a press conference here yesterday.

He said the Housing and Local Government Ministry may take action against them as it was concerned about the issue.

Chong added that the ministry had asked his department to submit information and details about innocent family members who were troubled by these moneylenders.

“Licensed moneylenders who are involved will be issued with show-cause letters, suspended or have their licences terminated,” he said.

However, Chong admitted that some of these strong-arm acts were done by the employees without the knowledge of the licensed moneylenders and some of them had even collected more money than they should and absconded with it.

To date, he said his department had received 207 complaints since January and that 27 of them were lodged by innocent family members.

Currently, Chong said there were about 3,500 licensed moneylenders nationwide and that he would arrange a dialogue session between the Malaysian Licensed Money-lenders Association with Housing and Local Government Minister Datuk Seri Ong Ka Chuan by end of the month.

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