New modus operandi by Ah Long using credit cards

I really hate Ah Long! They ruin people's life.

Ah Long now offer quick loans via credit cards

GEORGE TOWN: Loan sharks now have a hassle-free modus operandi involving the use of credit cards to issue money to customers while leaving the headache of debt collection to the banks.

Posing as merchants and under the pretence of settling purchase transactions, these Ah Long would swipe the credit cards of customers for the amount loaned plus interest, said state Commercial Crime Investigation Department chief Asst Comm Roslee Chik.

"For instance, if a customer wants RM4,000, they will swipe his credit card for RM4,200, including interest.

"The payment is supposedly for the purchase of items such as a refrigerator. When the bank calls up the customer to confirm the purchase, he will confirm it," ACP Roslee told The Star yesterday.

ACP Roslee said the new tactic saved the loan sharks the hassle of going after debtors.

"They get the money from the banks, which, in turn, will need to go after the debtors.

"The loan sharks have ways to set up bogus companies," he added.

He said two raids on loan sharks activities last month revealed the latest modus operandi.

He urged bank officers to clarify any transaction with the police if they suspected something amiss.

He said the "merchants" could be charged under Section 420 of the Penal Code for fraud while the card holder could be charged under the same Act for abetting the merchant.

"Furthermore, they will have to pay interest to the loan sharks and the bank, as they will also be charged interest when they can't pay before the due date," ACP Roslee said.

Via The Star