We call upon the government to stop the latest scheme by a company (Courts Mammoth) to increase its sales because it will only encourage consumers to get deeper into debt.

This company has advertised that it can pre-approve purchases of up to eight times the consumer's salary. No minimum income is required and approval is instant and hassle free. Consumers can also choose to pay for their purchases in weekly or monthly instalments for up to four years.

It is very irresponsible of the company to give such a large sum of credit to consumers. Even banks do not give a credit limit of eight times the salary of credit cardholders. Consumers sign up because they find the instalments affordable. They are not aware of the high interest rates charged by the company.

At 1.98% per month the interest charged is almost 24 % per annum. There is also the compulsory documentation fee of RM99. Furthermore since payments are made by instalments, many consumers wrongly believe that they have signed hire-purchase contracts, which come under the Hire-Purchase Act 1967

However their contracts are easy- payment contracts, the terms and conditions of which are dictated by the company as there are no specific laws on easy-payments.

Consumers should not be celebrating their forthcoming festivities burdened by unnecessary debt. Being caught in the debt trap is the root of many social problems. The person with unmanageable debt will suffer great stress and fear wondering how to ward off his creditor and to hold on to the goods purchased. The debt trap also leads to the breakdown in family relationships.

The government should act to prevent more consumers from falling into the trap laid by the company.

The writer is the president of the Consumers Association of Penang .