Contractor loses close to $790 in cash loan scam

KUALA LUMPUR - A contractor desperate for at least RM2,000 (S$790) ended up losing close to that amount to conmen.

The 56-year-old from Cheras, identified only as Low, found a flyer advertising a moneylending service in his post box early this month.

Hoping to borrow RM5,000 to buy building materials and to settle debts, he contacted the service.

Low was told that he could only borrow RM3,000 first.

"They said they wanted to see if I could make the repayments on time and then they would consider lending me bigger amounts," he said at the MCA headquarters here.

He was asked to provide two post-dated cheques for RM1,500 each to ensure that the repayments would be on time. The cheques were dated Sept 9 and Sept 16.

Then he was told that the RM3,000 would be banked into his account that day, on Sept 3.

"Two men came over to collect the cheques from me. After taking them, they told me that I would only receive RM2,000 instead of the RM3,000 due to "administrative costs".

"I was desperate for the money and had already given them the cheques, so I had to agree.

"I waited for a few days but the money was still not transferred."

Low then called the moneylending service. The man there insisted that the money had been transferred and challenged him to lodge a report.

"The man also said he would send people to harm me if the cheques I had given them bounced.

"It was too late to cancel the first cheque but there is now no more money in my bank account, so they will not be able to cash the second cheque. I am worried they will harm my family," he said.