Money lenders go high tech
Published: Sep 21, 2005 5:49 AM | Updated: Jan 29, 2008 10:21 AM
Years ago, the small loans business was the domain of the chettiar, among other traditional money lenders.
They were later overtaken by operators offering services via name cards stuck on windscreens, public telephone booths or bus shelters, or stuffed into post boxes.
Years ago, the small loans business was the domain of the chettiar, among other traditional money lenders.
They were later overtaken by operators offering services via name cards stuck on windscreens, public telephone booths or bus shelters, or stuffed into post boxes.
It now appears that money lenders of the 21st century are taking their business online, placing advertisements on websites such as that of the New Straits Times.
Clicking on one such advertisement for pinjaman2u.com redirects users to a well designed website called Vault Credit Co.
According to the frequently-asked-question page, loans between RM10,000 to RM250,000 can be approved within 48 hours. Potential clients can fill up an application form online or join a referral programme.
The website also provides names and phone numbers of two customer support agents to answer enquiries about the service.
Permit obtained
Contacted by malaysiakini, an agent said that Siang Wang Trading KL, which owns the website, is a registered company.
"Lately, business has not been very good. So we needed to find new ways (to reach clients)," said the agent, known only as Alan.
However, he claimed that response to the services of the two-month-old website has not been very encouraging.
Alan said the company is a legitimate operation, as it holds a money lender's licence from the Housing and Local Government Ministry.
He also said the company has an advertising permit - it uses the same one for its print advertisements.
A check with Bank Negara revealed that it only has jurisdiction over major financial institutions, while money lenders have to obtain a licence from the Housing and Local Government Ministry under the Money Lenders Act 1951.
The law requires certain information to be included in advertisements, such as the business registration number, date of validity, advertising permit, interest rate, and name, address and telephone number of the company.
Asked why his company's address is not listed in the website advertisement, Alan replied: "A phone number should be enough."
An official of the ministry's licensing department, when asked whether it is monitoring online advertisements, said it can only act if there are complaints.
They were later overtaken by operators offering services via name cards stuck on windscreens, public telephone booths or bus shelters, or stuffed into post boxes.
It now appears that money lenders of the 21st century are taking their business online, placing advertisements on websites such as that of the New Straits Times.
Clicking on one such advertisement for pinjaman2u.com redirects users to a well designed website called Vault Credit Co.
According to the frequently-asked-question page, loans between RM10,000 to RM250,000 can be approved within 48 hours. Potential clients can fill up an application form online or join a referral programme. The website also provides names and phone numbers of two customer support agents to answer enquiries about the service.
Permit obtained
Contacted by malaysiakini, an agent said that Siang Wang Trading KL, which owns the website, is a registered company.
"Lately, business has not been very good. So we needed to find new ways (to reach clients)," said the agent, known only as Alan.
However, he claimed that response to the services of the two-month-old website has not been very encouraging.
Alan said the company is a legitimate operation, as it holds a money lender's licence from the Housing and Local Government Ministry.
He also said the company has an advertising permit - it uses the same one for its print advertisements.
A check with Bank Negara revealed that it only has jurisdiction over major financial institutions, while money lenders have to obtain a licence from the Housing and Local Government Ministry under the Money Lenders Act 1951. The law requires certain information to be included in advertisements, such as the business registration number, date of validity, advertising permit, interest rate, and name, address and telephone number of the company.
Asked why his company's address is not listed in the website advertisement, Alan replied: "A phone number should be enough."
An official of the ministry's licensing department, when asked whether it is monitoring online advertisements, said it can only act if there are complaints.
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