JOHOR BARU: A syndicate purporting to offer loans has found a new and fast way to fleece people desperate for money.

Instead of waiting for repayment sums inflated with exorbitant interest, its members ask borrowers to pay "processing fees", and then disappear after they receive the money.

The syndicate has been putting up posters, leaflets and even stickers advertising "quick cash, no guarantor and low interest," and have conned many victims into paying money upfront as processing fees.

However, once the money is banked into the syndicate's account - supposedly as payment for drawing up an agreement, stamping and security deposit - the syndicate members disappear.

It is learnt that at least three victims who were hoping to get loans to start businesses or for personal use were conned of between RM1,500 and RM3,000 each.

The victims, two men and a women in their 20s and 30s, realising that they had been conned, lodged separate reports over the past few days.

Sources said the victims claimed that they knew about the company from leaflets and called to seek loans of between RM10,000 and RM20,000.

They were then told they had to deposit money into a bank account before the loan could be released.

The sources believe there could be many more victims, but who were too embarrassed to lodge police reports.

They said that the local council should remove the thousands of placards, banners, posters and stickers on loan offers illegally placed in public places.

Meanwhile, Johor Indian Business Association president P. Sivakumar said that he was not surprised with the new tactics used, as there were so many advertisements put up all over the city by illegal moneylenders. -The Star/Asia News Network