HIT by the increasing cost of living, more wage earners and professionals are now turning to illegal moneylenders, better known as "Ah Long", as an immediate solution to their escalating financial commitments.
Borrowers these days range from doctors, engineers, pilots and a large number of civil servants, many of whom draw a five-figure salary each month.
Based on accounts from three loan sharks in Negri Sembilan, business has been flourishing and most of their clients are in a state of desperation when they come to them for loans.
According to Benny, 38, who has been an "Ah Long" for the past five years, a majority of their clients used to be those who were heavily in debt due to gambling habits.
But of late, their clientele has taken a more professional twist with doctors, lawyers and even company chief executive officers seeking their services.
"People have this misconception that only a certain class of people borrow money from us, but the fact is that almost half of our clients are professionals.
"Many of these professionals live beyond their means and before they know it, they have huge credit card debts, car and housing loans and other commitments to settle.
"Due to their bad payment records, they get blacklisted and banks no longer want to entertain them for loans.
"When pushed to the wall, they have no choice but to come to us. The problem is that those living in the fast lane never want to give up their lifestyles and soon find themselves drowning in debts," he said.
Benny said that to pay off one "Ah Long", these clients sometimes played a deadly domino game where they would borrow from one to pay another and in time, find themselves owing huge amounts to several different "Ah Long" across the country.
Another "Ah Long", Rajan, 44, said illegal moneylenders had their own network in a state and would not lend money to a client who had already been "blacklisted" by another "Ah Long".
"When this happens, the client would travel to another state and seek the services of another illegal moneylender who has no knowledge of his earlier debts.
"You cannot always point the finger at us. Maybe the government should come up with some kind of law to penalise the borrowers themselves."
Rajan pointed out that while there were cases when the "Ah Long" had resorted to various methods to recover their money, the "Ah Long" themselves had their fair share of horror stories when dealing with clients.
"Yes, we know the client has various avenues and we frequently read stories about how the moneylenders had gone after them and such.
"However, there are two sides to the coin and unlike the client, we cannot run to the police, MCA or media for protection."
He said several "Ah Long" had lost up to a million ringgit to clients who had taken the money and then disappeared.
"We have even had cases where the clients employed thugs to beat up the 'Ah Long'. The only thing is these cases are not highlighted in the media.
"Not all clients are desperate housewives trying hard to settle their unfaithful husband's debts. Some are unscrupulous characters disguised in sheep's clothing."
Rajan said many moneylenders operate illegally because obtaining a licence from the Housing and Local Government Ministry was not an easy task.
"For one, we need to show a RM1 million deposit even before we can think of applying for a licence. Many of us are small-time businessmen and do not have that kind of money.
"Also, when we want to renew the licence, we have to show proof that we have at least RM100,000 in our accounts. Many of us had earlier applied for licences, but under the Moneylenders Act 1951, the registrar has the power to reject a fresh application without any reason."
He said the law was also discriminatory against ex-cons and those with past criminal records who want to turn over a new leaf.
"Before we apply for a licence, we have to go through various screening processes with the police and because of these stringent requirements, many of us end up doing businesses illegally," he added.
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