Effect
1. red paint
when a person fails to pay in time Ah Long will spray, splash, or write in red paint on the walls of the house or porperty of that person as treat of violence and the shame the borrower into repaying the loan. According to local police authoroties, there have been cases where borrowers were beaten or had their property damaged or destroyed, and some victim committed suicide.
2. pig head
pig head are sometimes hung outside the borrower's house, as a form of intimidation as well as a way of 'marking' the person as a loan 'defaulter'
3. stolen items
Nowadays, insteadmof waiting for the victim to pay up, Ah Longs now tebd to break into victim's house and steal items worth the loan. This method is commonly used to save time and also effort.
4. identity banner display
recent cases shows that Ah Longs also display the borrower's identity card on huge banner and post it on fences. since Ah Long only need the identify card from borrowers, this tactic is becoming common so that the borrower will feel humiliated due to public attention and will quickly pay up.

statistic Loan Shark

To date the Johor MCA Public Services and Complaints Department received 150 cases of people entangled with the vicious loan shark menace. the figure is a 60% increase over the less than 100 cases reported to the department last year. In Kuala Lumpur, the city police recieved 400 reports againts loan shark up till yesterday, while the whole of last year there were 500 reports.

What to do if you have borrowed from a loan shark

If you have borrowed money from a loan shark you are under no legal obligation to repay the debt. You should contact your local Trading Standards office immediately. They will help you deal with your situation and the loan shark.

To find your nearest Trading Standards office enter your postcode in the box located on the right-hand side of the Trading Standards website homepage.

Is it a crime not to repay a loan from a loan shark?

If a lender isn't licensed by the OFT then they have no legal right to recover the debt.

Loan sharks sometimes frighten people by saying they'll be prosecuted and even sent to prison if they don't pay up. This can't happen - not repaying a loan from an unlicensed lender isn't a criminal offence.

loan shark

A person or entity that charges borrowers interest above an established legal rate. Depending on where a person lives, lenders typically cannot charge more than 60% interest per annum. A loan shark, then, would be someone who illegally charged interest over the state's legal limit, which could range up to, or even over, 100%. For example, a loan shark would lend $10,000 to a person with the provision that they be repaid $20,000 within 30 days. A big word of caution is that loan sharks will often back their lendings with threats of violence or damage to a person's reputation as a way to ensure the loans are repaid. If you find yourself in a position of owing to a loan shark, make sure you talk to a financial (and maybe a legal) professional to help you get out of the situation.

definition of Loan Shark

A loan shark is a person or body that offers illegal unsecured loans at high interest rates to individuals, often backed by blackmail or threats of violence. They provide credit to those who are not willing or are unable to obtain it from more respectable sources, usually because interest rates commensurate with the perceived risk are illegal.