The borrower received RM500 and had to pay back RM3,000 in two days.
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Should you pay an upfront fee for a loan?
A regulated lender will never ask you to do this, no matter your credit score.
A young man was nearly conned out of RM3,000 when he tried to borrow RM30,000 from a scammer.
The scammer had asked him for the money before the loan can be approved.
However, he did not have the money. The scammer then gave him RM500 through an online transfer, ostensibly to prove that the loan offer is genuine.
Unfortunately, the deal turn sour and the scammer demanded him to pay back RM3,000 within two days.
Failing to do so, he would have to surrender his ATM card and bank account details to the scammer.
Uncle Kentang To The Rescue
Thankfully, his predicament came to the knowledge of social activist Kuan Chee Heng, also known as Uncle Kentang.
You’ve probably heard about him by now. Kuan Chee Heng (or famous for his potato icon) helps the needy regardless of race or religion. We need more Malaysians like him to come forth#WeAreMalaysians 🇲🇾 pic.twitter.com/B1iiSRgrPJ— Asrul Muzaffar🇲🇾 (@asrulmm) November 30, 2018
Kuan immediately advised the young man to close his bank account.
Despite a police report, the scammer continues to threaten and demand the RM3,000. I told the young man to stand firm.Uncle Kentang on continuous harrasment by the scammer.
Kuan said he has sought further assistance from the police to locate and arrest the scammer.
At the same time, he advised the public not to borrow money from unverified lenders on social media.
Advance-Fee Loan Schemes – Understanding & Avoiding
Any up-front fee that the lender wants to collect before granting the loan is a cue to walk away, especially if you’re told it’s for “insurance,” “processing,” or just “paperwork.”
Legitimate lenders often charge application, appraisal, or credit report fees, but not loan fees.
Advance-fee loan scams target people who have bad credit or trouble getting a loan for other reasons.
Scammers are often aggressive and will try to rush the customer into making a payment or on-the-spot commitments.
They post ads, often online, or call with these so-called deals.
Many buy lists of the names of people who have searched or applied online for personal or other loans.