[Watch] Loan Apps Promised Cash, Man Says RM4,000 Became RM17,000

A 24-year-old borrower said loan apps advertised on social media left him facing about RM17,000 in claimed debt after he received RM3,000 to RM4,000 across five loans.

Oriental Daily

In Brief

A man borrowed RM3,000 to RM4,000 through five loan apps but was told he owed RM17,000, with alleged threats made against his family.
DAPSY chief Lee Wen Bin plans to report the loan apps to MCMC, urging people to use banks or licensed lenders instead.

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A 24-year-old man said he borrowed about RM3,000 to RM4,000 through five loan apps advertised on social media, but was later told he owed about RM17,000 and received alleged threats directed at him and his family.

The man, identified by Oriental Daily as Kong Jun Xian, said he downloaded the apps in June while looking for work and struggling to cover daily expenses and phone bills.

He said one app approved a RM1,900 loan but credited only RM1,100, with RM800 deducted as interest.

He was then required to repay the loan within 16 days.

The money entered through a phone, and the reported debt later reached RM17,000.

According to Oriental Daily, he said:

He used five loan apps
He received about RM3,000 to RM4,000 in total
His reported debt later rose to about RM17,000
One app approved RM1,900 but disbursed RM1,100
The remaining RM800 was treated as interest
He was told to repay the loan within 16 days

He later learned from his godbrother that the loans were believed to involve illegal moneylenders.

Reports Of Threats And Police Reports

Kong alleged that he received calls and voice messages from multiple phone numbers after repayments were missed.

The messages included photographs and videos of red-paint incidents and house fires, as well as threats directed at the family.

Three police reports were filed, patrols were requested near the home, and closed-circuit television cameras were installed.

Kong’s mother had moved to stay with his brother-in-law after she became concerned about safety at home.

The identities of the people behind the messages, and whether they were linked to the loan-app operators, were not independently established in the material provided.

Call For App Investigation

Kong also alleged that an NGO collected RM500 after stating that it could help resolve the matter.

However, Oriental Daily reported that the alleged harassment continued.

The report did not identify the NGO, and its response was not available.

DAP Selangor Youth (DAPSY) chief Lee Wen Bin, who accompanied Kong at a press conference on Monday (Aug 24), said he would file a report with the Malaysian Communications and Multimedia Commission (MCMC) over the loan apps.

He said he hoped the apps would be investigated and taken down if they were found to have breached regulations.

Lee also appealed to companies to consider offering Kong employment, noting that Kong is a person with disabilities (OKU).

He advised people seeking financial assistance to approach banks or licensed lenders.

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How To Check A Loan App Before Borrowing

People considering a loan through an app can first check whether the lender is licensed by the Ministry of Housing and Local Government (KPKT).

Non-bank moneylenders in Malaysia must hold a KPKT licence, and you can check a company’s status through the ministry’s official i-KrediKom platform.

If an app claims to represent a bank, digital bank or financial institution, check its status through official Bank Negara Malaysia (BNM) sources.

BNM’s Financial Consumer Alert List also identifies entities and schemes that may be unauthorised.

Borrowers should also review the permissions requested by the app and the loan terms before proceeding.

Be careful if a loan app asks to access your contact list, photos, files, location or social-media accounts.

Before agreeing to a loan, make sure you understand how much money you will receive, how much you must repay, any extra charges, and when payment is due.

Use official bank or lender websites, branches, or verified app-store listings to apply.

Avoid clicking loan links from social-media ads, messages or unfamiliar websites.