Loan sharks splashed paint over three vehicles in a Hougang carpark following a three-month campaign of harassment that has left neighbours fearing for their safety.

The illegal lenders scribbled messages threatening to set houses on fire if "Kelvin" did not pay his debt.

Residents awoke yesterday to find the two cars and a van covered in red, yellow and black paint near Block 651, Hougang Avenue 8.

They said loan sharks had been targeting a particular flat for the past three months, but the debtor did not live there.

One woman, who declined to be named, e-mailed The Straits Times a photo of the vandalised vehicles. She said the loan sharks started by posting notices on the flat and another next to it, saying that "Kelvin" owed $170,000.

They later vandalised the doors and locked the gates of the unit and two others on the same floor. Yesterday, they locked the gate of the debtor's flat again.

Police received a call about the vandalised vehicles at about 7.50am. Investigations are ongoing.

Retiree Nancy Ho, 63, said: "I've been here for 26 years and it had been peaceful all the while, until now. I definitely cannot sleep soundly tonight."

Mr Yeo Guat Kwang, MP for the area, said: "Residents can install closed-circuit television cameras on their own, or if they cannot afford them, the town council will assist in installing them."

PRISCILLA GOY