Some pawnshops allegedly charging interest during MCO


Pawnshops are enjoying a boom as many consumers have lost their jobs because of Covid-19-imposed lockdowns. – The Malaysian Insight pic by Hasnoor Hussain, May 14, 2020.

THE Federation of Malaysian Consumers Association (Fomca) has received complaints that some pawnshops are pressuring those unfamiliar with a financial moratorium by imposing charges even during the conditional movement-control order (CMCO).

Fomca CEO Saravanan Thambirajah urged the Housing and Local Government Ministry to monitor the pawnshops charging consumers.

The Malaysia Pawnbrokers’ Association said previously charges should not be imposed for three months, namely from March 18 to May 12.

“Fomca has received complaints from consumers who have pawned their jewellery and have been told to pay charges up to nine months. Therefore, the ministry has to monitor all these pawnshops.

“The ministry should take the initiative to assist the people. Fomca hopes appropriate steps are taken to protect the rights of consumers against bullying simply because they are from low-income groups,” he said in a statement yesterday.

Saravanan said the ministry also gave the people the opportunity to report their predicament via social media or using WhatsApp by sending pictures and information of the pawnbroker involved. – Bernama, May 14, 2020.


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