KPKT denies involvement in advertisement offering EPF loan scheme

This is following advertisements targeting EPF account owners using the name of licensed moneylenders or community credit companies registered under the KPKT.

KPKT in a statement said, the advertisement offers loans with interest rates between five and seven per cent per month, far exceeding the interest rate set in the Moneylenders Act 1951 (Act 400) which is a maximum of 1.5 per cent per month or 18 per cent per year for individual loans.

It (the advertisement) also contains suspicious loan information intended to deceive the public including a loan scheme with no monthly payment with only an EPF statement required for a loan eligibility check, with a target of individuals who are aged between 48 and 55.

KPKT, which is taking a serious view of the advertisement, stressed that dealings with community credit companies can only be done in registered and legal business premises.

"People need to get confirmation of information from KPKT first before any agreement is made and not sign a blank agreement," it said.

KPKT said it feared the advertisement would affect the image and credibility of the community credit sector and have negative implications for the public, especially borrowers who are caught up in such irresponsible activities.

The ministry said any licensed community credit company found to be involved in 'misleading' loans or charging high interest rates could be prosecuted under Section 17A of Act 400 which provides for a maximum fine of RM20,000 or imprisonment not exceeding 18 months or both.

Any related complaints can be submitted through the KPKT Integrated Complaints System, namely aduan.kpkt.gov.my, i-KrediKom mobile application, Community Credit Control Division (BKKK) Hotline at 03-88914694/4690 or in person at the KPKT Complaints Counter, Level 1, KPKT in Putrajaya.