Loansharks Set Wrong Home on Fire While Chasing Debt — Then Apologised After Realising Their Mistake

 

Johor Bahru, Malaysia – A 70-year-old woman in Johor Bahru narrowly avoided tragedy after her home was allegedly targeted and set on fire by suspected loanshark debt collectors who later admitted they had gone after the wrong house.

The frightening incident occurred in the early hours of June 11, while the elderly woman and her family were away on a trip to Penang.

According to local media reports, the family received an alarming phone call at around 5 a.m. from a neighbour informing them that their house had been set ablaze.

Family Says They Owe No Money

The homeowner, identified by local media as Lin Xiuyu (transliteration), has lived in the neighbourhood for more than 30 years.

Her daughter, Chen Lifen, 44, said the family was shocked by the attack because they had never borrowed money from loansharks and had no outstanding debts.

"The problem is that we don't owe anyone any money and have never borrowed from loansharks," Chen told local media.

According to the family, a debt collection note was left at the scene containing a Singapore phone number, leading them to believe that the attack was connected to an alleged cross-border loansharking operation.

Neighbour Allegedly Owed Money

After returning home, the family reportedly spoke with a neighbour who admitted to borrowing money from a loanshark.

According to reports, the neighbour said repayment problems began after a bank account was frozen, making it difficult to continue making payments.

Local media further reported that the neighbour's daughter, who works in Singapore, had allegedly lost money at a casino before borrowing approximately RM5,688 (about S$1,800) from a loanshark.

The details of the alleged debt have not been independently verified by authorities.

Suspected Loansharks Allegedly Admit Mistake

Concerned for their mother's safety, Lin's children contacted the police and also reached out to the individuals they believed were responsible for the attack.

According to Chen, the alleged debt collectors later apologised and admitted that they had targeted the wrong property.

"He said his people made a mistake and that they would not bother us again," she told local media.

The family also claimed that the callers suggested they seek compensation from the neighbour whose debt had allegedly triggered the incident.

Authorities have not publicly confirmed the identity of those responsible, and investigations are ongoing.

Fire Could Have Ended in Tragedy

The family says they were fortunate that neighbours acted quickly after noticing the fire.

According to Chen, the flames had been started near a vehicle parked outside the house.

"I am very fortunate that my neighbours helped put out the fire in time because the fire was set near the car's fuel tank. If the fire hadn't been extinguished in time, it might have caused an explosion," she said.

Fortunately, no injuries were reported.

Repair Costs Expected to Exceed RM20,000

The family is now assessing the damage and is awaiting an official report from the local fire and rescue department before filing an insurance claim.

According to local media, repair costs are expected to exceed RM20,000, placing an additional financial burden on the elderly homeowner and her family.

Cross-Border Loansharking Concerns

The case has once again highlighted concerns over illegal loansharking activities and debt collection tactics that sometimes extend across borders between Singapore and Malaysia.

Authorities in both countries have repeatedly warned the public against borrowing money from unlicensed lenders, who are known to use intimidation, vandalism, threats, and property damage to pressure borrowers into repayment.

While investigations continue, the Johor Bahru family says they are simply grateful that no one was home when the attack occurred and that alert neighbours prevented what could have been a far more devastating tragedy.

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Authorities encourage anyone with information about suspected loansharking activities to contact the police. Individuals facing financial difficulties are also urged to seek help from licensed financial institutions and accredited debt counselling services rather than turning to illegal money lenders.