JOHOR BARU, Oct 19 — Police have arrested five Malaysian men suspected of threatening to harm borrowers who default on loans as well as their family.

Johor police chief Datuk Kamarul Zaman Mamat said a team from the Secret Societies, Gambling and Vice Division, also known as D7, arrested the five men in Iskandar Puteri between 9.30am and 3pm yesterday.

“Those arrested are locals, aged between 23 and 41, and are known to be active in the unlicensed money lending trade as well as using violent threats against borrowers who failed to make payments,” he said in a statement today.

He said the five suspects are believed to be tied to a loan shark network operating in the area for the past three years and known to charge higher interest rates and threaten harm on borrowers who default on payment.

He added that police confiscated 12 mobile phones of various brands, 12 SIM cards, six automated teller machine (ATM) bank cards, one bank cheque, 46 bank transaction receipts, one note book, a computer and four cars during yesterday’s operation.

With the arrest of the five suspects, investigators believe that they have solved 18 cases involving throwing paint at homes and violent threats in the Iskandar Puteri and Kluang districts.

He also said there was a case involving a borrower who is from Bercham, Ipoh in Perak.

“The syndicate’s modus operandi is to advertise their loan offers on Facebook and other social media platforms.

“The syndicate’s loan amount starts from RM500 to RM30,000, while the loan’s interest is charged as much as five to 20 per cent per week,” the senior policeman said, adding that payments to the syndicate are made on a weekly basis.

“If a borrower fails to pay on time, the syndicate will make threats to scare the borrowers and their family members,” he said, adding that the loan amount will then be calculated with a higher interest rate,” he said.

Kamarul Zaman said police are investigating the case under Section 5(2) of the Money Lenders Act 1951 and Section 506 of the Penal Code.

He added that police will apply for a remand order for the suspects to assist in investigations.