When the family of a 27-year-old man from the state of Kedah, Malaysia, raised RM100,000 (about US$25,000) to pay off the debts he had accumulated due to his gambling addiction, they believed they could finally leave that nightmare behind. However, he still felt guilty about his parents’ sacrifice.
As he recounted during a press conference organized by the Kedah Consumers Association (CAKE), he decided to borrow money from two networks of illegal lenders, known in Malaysia as “ah longs”, intending to gradually repay the money his family had spent to help him.
He first obtained a loan of RM2,700 (about US$680) and then another of RM2,800 (around US$705). What seemed like a temporary solution ended up becoming a new nightmare.
As the weeks went by, the lenders began demanding much larger sums, while threatening to set the family home on fire and constantly harassing his parents. They even threw red paint at the house, an intimidation tactic frequently used by these criminal networks in Malaysia to pressure those who do not pay their debts.
One of the groups went so far as to demand RM88,000 (about US$22,000), even though the family offered to pay RM10,000 (about US$2,500) to settle the dispute. The offer was rejected, and the threats continued.
The case once again highlighted the danger of informal loans and how a debt that seemed resolved can turn into an even bigger problem when illegal lending organizations become involved. What began with parents willing to sacrifice all their savings to give their son a second chance ended up becoming a story of fear, guilt, and extortion that now affects the entire family.