Illegal moneylending syndicates in Malaysia are increasingly targeting young people, including underage teenagers, the Malaysian International Humanitarian Organisation said on May 1, 2026 [1]. The case involves a 17-year-old schoolgirl said to be trapped in loan shark debt amounting to RM20,000 [1].
According to the victim’s uncle, the teenager initially borrowed about RM500 [1]. Repeated borrowing led to overlapping loans totaling approximately RM7,250, the uncle said [1]. Although she repaid around RM5,325, the debt collectors continued to pressure her for the full RM20,000, according to reports [1].
The victim’s uncle, Chai, described how attempts to settle the debt only led to new loans. "Each time she tried to settle the debt, another party would come forward claiming to help, but in reality they were offering new loans," he said. "In the end, she became trapped in overlapping debts and could not escape" [1].
Family members reportedly received serious threats from the syndicates, including threats to cut off the victim’s hand if she did not pay [1]. Chai also said the victim’s mother was threatened with the kidnapping of her daughter if payment was not made [1].
Datuk Hishamuddin Hashim said, "This case involves an underage teenager who is still in school and clearly shows how syndicates target desperate young individuals." He added, "The situation is very serious because the victim does not fully understand the consequences of such loans and ultimately becomes trapped in an unreasonable debt burden" [1].
A police report related to the case was lodged on April 29, 2026, and the Sepang District Police are investigating [1].
