LOAN sharks preying on expatriates with money worries are threatening the families of their clients back in their home countries to ensure payment of inflated interest rates.
One community group in Bahrain has recorded at least 10 complaints in the last 12 weeks against despicable illegal money lenders operating in the country, or frontmen for operations set up abroad.
Members of Palisha Virudha Samithi (Committee Against Interest) also shared details of shocking incidents, claiming many low-income expatriate workers were frequently feeling suicidal.
“We have received at least 10 cases in the last two to three months – complaints about people being trapped in interest-based loans,” Palisha Virudha Samithi convener Yogananand K told the GDN.
“Typically, we investigate cases by listening to both sides and attempting to reach an amicable resolution, which is to repay the principal amount in instalments. However, if a solution cannot be reached, we will provide legal assistance.
“Some situations are dire, such as the affected person’s passport being withheld or the person being forced to sign on blank papers – such cases are referred to the Indian Embassy.”
The recent suicide of Indian Rajeevan Chelapuram has prompted the group to re-engage and increase the number of public awareness campaigns.
The GDN reported that the 40-year-old rental company employee committed suicide by hanging from a ceiling fan, apparently after being forced to sign a blank piece of paper by people from whom he had borrowed money with interest.
The group’s general secretary Dijeesh Kumar said its members had decided to increase its activities and engagements in light of the incident. “We were very active before and during the pandemic,” he said. “We could resolve several cases by assisting people in obtaining their passports and returning home.
“Then there was a lull, but in the last two to three months, we’ve seen an increase in cases. Perhaps it is the pattern of life returning to normal and people attempting to revive businesses or manage family expenses.
“Unfortunately, people reach out only when they are in deep trouble – the latest suicide was a wake-up call – we have to act now and set up a system to help people with all necessary legal assistance.
“We have represented the matter at the Indian Embassy and the team has pledged its support.
“The next vital step is awareness – we have branched out in Riffa and Muharraq and now we plan to engage in areas like Manama, especially the Central Market surrounds, and other remote areas, and to host meetings and educational seminars – the first-of-a-kind will be held in mid-November.”
The group’s chairman Jamal Nadvi warned that the loan-shark menace would not end unless strong legal action was taken against those involved.
“A large number of moneylenders, including those from Kerala, are active again in Bahrain – they are mainly targeting non-residents including female domestic workers,” said Mr Nadvi.
Passports
“They are confiscating the passports of those who borrow money, taking cheques of a local bank and making them sign on blank legal documents or white papers.
“When they fail to pay the interest, they misuse these documents to impose travel ban or legal cases against them.
“Some of the complaints that we have come across are shocking. People who have borrowed BD600 to BD800 are still in debt despite their paying interest amounts of more than BD1,200.
“These loan sharks are also reportedly threatening and humiliating the relatives of the borrowers back in their home country.
“We have also come across an incident where a family was forced to sign a blank stamp paper in order to get the body of an expatriate who committed suicide repatriated. This is unacceptable – we have decided to proceed with strong legal measures against such mafias.”
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