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My relative refuses to pay back the money I lent to him

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asked on Oct 8, 2019 at 23:05
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edited on Mar 3, 2020 at 00:08
 
I borrowed total RM25K to my relative last year. In June this year, I requested him to pay me back the money because I need the money to pay for my mum's eyes operations. At first, he promised to pay me on a monthly basis, but when the day came, he disappeared. SMSes and calls, he just ignored. May I know can I ask lawyer from a law firm to issue a demand letter to him? If he still don't want to pay, what can I do next? 
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8 Answers

answered on Oct 9, 2019 at 22:11
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Why did you lend him the money?  ( to buy what? )
What type of relative?  ex-husband?
Is he supposed to pay interest for the loan?
Is there a loan agreement?
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answered on Oct 9, 2019 at 22:25
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edited Mar 3, 2020 at 00:02
 
@william chan,

Thanks for your reply. I lent him money because he was jobless at that time. He is my so called God bro since we are young. 

I borrowed him money by bank transfer or cash deposit. There was no agreement between us. 
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answered on Oct 10, 2019 at 00:24
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Is he supposed to pay interest for the loan?
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answered on Oct 10, 2019 at 10:12
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edited Mar 2, 2020 at 17:11
 
@william chan,

I didn't mention to him I will collect the interest from him. But can I impose interest on the amount I lent him? 
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answered on Oct 10, 2019 at 22:09
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edited Mar 2, 2020 at 17:10
 
If you send him a letter or message about interest, that would by law make you an Unlicensed Money Lender. (loan shark). Under the Money Lenders Act, the courts are not allowed to help loan sharks recover any loan.

If he still don't want to pay, what can I do next?
Since there is no proof that you lent him any money, it would be difficult to recover the loan.
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answered on Oct 11, 2019 at 12:11
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edited Mar 2, 2020 at 17:09
 
@william chan,

I didn't mentioned to him I will impose interest. Last month I did ask him to sign a proof of debt, which I found on the Internet and typed the letter myself. And he already signed on it. 

All the while, when I borrow him I got keep the transaction slip. Can this be proof of borrow? 
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answered on Oct 15, 2019 at 09:47
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edited Mar 2, 2020 at 17:06
 
All the while, when I borrow him I got keep the transaction slip. Can this be proof of borrow?
This is only proof of money being transferred or paid. Not proof of lending.

Last month I did ask him to sign a proof of debt, which I found on the Internet and typed the letter myself. And he already signed on it.
Post image of the letter here for checking.

If he is poor, sending Demand Letter to him or suing him will not get you anything.

It may be better to forgive the money, after all he is your brother.
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answered on Oct 15, 2019 at 15:58
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edited Mar 2, 2020 at 17:03
 
Okay, thanks @william for the advice.
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