PUBLISHED ONJune 22, 2026 4:18 AMBYKoh Xing YingA 70-year-old woman in Johor Bahru became the unintended victim of a loan shark's debt collection tactics after her home was mistakenly set on fire over a neighbour's unpaid debt.
The victim, Lin Xiuyu (transliteration), was on a family trip to Penang when the incident occurred in the early hours of June 11, reported Malaysian news outlet Sin Chew Daily.
According to her daughter, Chen Lifen (transliteration), 44, the family received a call from a neighbour at about 5am informing them that their house had been set ablaze.
"The problem is that we don't owe anyone any money and have never borrowed from loansharks," said Chen, adding that a debt collection note was also left behind at the scene, containing a Singapore phone number.
Upon returning from their trip, the family spoke to a neighbour who admitted to borrowing money from a loan shark but said he was unable to keep up with repayments after his bank account was frozen, reported Sin Chew Daily.
Chen added that the neighbour's daughter, who works in Singapore, reportedly lost money at a casino before borrowing RM5,688 (S$1,800) from a loan shark.
Worried for their mother's safety, Lin's children sought help from the police.
Speaking to Shin Min Daily News, Chen said that after reaching out to the alleged culprits, the loan sharks apologised and acknowledged that they had targeted the wrong property.
"He said his people made a mistake and that they would not bother us again," she said.
They reportedly told Chen to contact their neighbour to seek compensation.
Chen added that her mother, who has lived in the neighbourhood for more than 30 years, was fortunate not to have been at home when the attack occurred, and that the family was grateful that neighbours responded quickly to put out the fire.
"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," said Chen.
The family is currently awaiting a report from the local fire and rescue department before filing an insurance claim. Repair costs are expected to exceed RM20,000.
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