The state police on Monday arrested a four-member illegal loan syndicate (Ah Long) in Ipoh that has been raking in a monthly turnover of RM150,000 by charging their ‘clients' a wallet squeezing monthly interest rate of 120 percent.

NONE State police chief Zulkiflki Abdullah ( left ) told a media conference at the state police headquarters yesterday afternoon that commercial crime division police raided an apartment in Tambun, Ipoh and arrested four Chinese--two males and two females- aged between 20 and 25.

They also seized account books containing records of loan transactions , files listing names of borrowers and their personal details, money deposit slips, bank savings account books and cash amounting to RM5,802.

Police also confiscated, among others 800 small plastic banners embossed with mobile telephone numbers to advertise the syndicate's operations.

The four from Tangkak, Johor,who had been conducting their illegal business since February 2009 were remanded for four days. All had no previous criminal records.

NONE Later yesterday the two women were released on bail but their compatriots had their remand extended for another three days to help police in their investigations.

They are being probed under Section 5 of the Money Lending Act 2003 which carries a fine of between RM20,000 and RM100,000 or a jail term of not more than five years or both, if found guilty.

Zulkifliki said "The Ah Longs charged an exorbitant monthly interest of 120 percent when compared to the normal yearly interest of 12 percent with security and 18 percent without security."

"They have the cheek to advertise their illegal money activities as a registered company to fool the public," he said.

He advised people not to fall into such debt traps and called on those with information on such illegal activities to tip off the state commercial crime division by calling 05-5452252.