Moneylenders Act will be amended - Kong

2009/11/24

KUALA LUMPUR: The Moneylenders Act 1951 will be amended to improve and strengthen its scope to protect the rights and interests of borrowers, Housing and Local Government Minister Datuk Seri Kong Cho Ha said. He said the ministry was recommending that terms and conditions for licensed moneylenders be tightened and that penalties for offenders be increased from RM100,000 to RM250,000.

Monitoring of 365 premises this year found that moneylenders committed 205 offences including not displaying the licence, using the wrong agreement form, no accounting records, charging high interest and failure to send transaction reports.

"Licensed moneylenders who do not adhere to the terms and conditions and the rules will only confuse the people on whether they are offering a legal service or just like ah longs," he told reporters after opening a workshop on the Moneylenders Act 1951 here today.

Kong said the ministry had frozen new moneylending licences since May as it wanted to study the terms and conditions to ensure that licensed moneylenders conduct their business accordingly.

"The ministry has no plans to reopen the application of new licences. Firm action will be taken against moneylenders who misuse their licences," he said.
Licensed moneylenders were also urged to upgrade their image and change the society''s perception that they were similar to ah longs (loansharks).

The minister also launched the Electronic Moneylender & Pawnbroker System (eMAPS) portal where the public can make applications online.

The portal also displays a list of licensed moneylenders nationwide to prevent the public from being cheated by unlicensed moneylenders or ah longs.
-- BERNAMA