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Loan

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asked on Feb 11, 2011 at 18:50
by   lcong21
I would like to get some advice on loan debts.

My brother is owing his colleague more than 100k and I do not know whether this loan is under friendship loan or ????

Now, he is out of jobs and the colleague is chasing for repayment. So, far we managed to help pay back $10k but rest my brother will try to pay him by monthly repayment but the colleague is asking him to sign an agreement which we do not know what is it?

It was told that this agreemnent is prepare by his lawyer.

May I know will his colleague have the right to sue my brother?

Please advice
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answered on Feb 11, 2011 at 22:01
by   vkpc
Why should your brother sign now?
When he took the loan, it was based on a verbal agreement.
Why change to a written one?
Nobody can force anybody to sign anything if they do not want to sign.
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answered on Feb 12, 2011 at 05:32
by   vkpc
May I know will his colleague have the right to sue my brother?
Does the loan include interest?
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answered on Feb 12, 2011 at 15:16
by   lcong21
I have saw the loan have in written agreement between both of them...
Yes, my brother have paid for interest but cannot handle until it exploded to family attention but exactly how much he had paid the interest to him we are not sure...

Properly, previous agreement is not official legal, that why this time the colleague seek his legal to prepare official doc and keep pampering my brother to sign but we have not seen the agreement yet.
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answered on Feb 13, 2011 at 04:35
by   vkpc
Since the loan includes interest, by definition of Moneylenders Act, his colleague is an unlicensed moneylender.
That means in the eyes of the law, he is a loan shark even though his face don't look like one.
Moneylenders Act does not allow the courts to help an unlicensed moneylender to recover any debts or loans.
This means that if he sues your brother, your brother just have to show proof that the loan includes interest and that lawsuit will be thrown out by the court.  In other words, he cannot sue but he can beat your brother with a stick.

My advice is not to sign any new agreements.
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answered on Feb 14, 2011 at 01:47
by   lcong21
vkcp..
thanks for the advice
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answered on Feb 28, 2011 at 06:20
by   eeNa
ur brother is suxcx~~..he take $$$ oledi but now very hard to pay..i really hate this kind of people..im not along niway
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answered on Mar 20, 2011 at 01:17
by   elsie
The last time discussion of this issue is yet to solve.
As I have explained that the colleague is pushing my brother to sign an agreement but he cannot get hold of my brother and now the colleague have appointed a lawyer to prepare "Friendly Loan Agreement".
The lawyer office is requesting my brother to present at the lawyer office on the specific date to execute the agreement and we do not know what have been draft from this agreement.

Please advice should my brother go and see the lawyer..as now he is unable to find a job yet and definitely cannot settle the loan in the short term...

Thanks
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answered on Mar 20, 2011 at 23:57
by   vkpc
No need to go.
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answered on Mar 24, 2011 at 02:23
by   Boring
The last time discussion of this issue is yet to solve.
As I have explained that the colleague is pushing my brother to sign an agreement but he cannot get hold of my brother and now the colleague have appointed a lawyer to prepare "Friendly Loan Agreement".
The lawyer office is requesting my brother to present at the lawyer office on the specific date to execute the agreement and we do not know what have been draft from this agreement.

Please advice should my brother go and see the lawyer..as now he is unable to find a job yet and definitely cannot settle the loan in the short term...

Thanks

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Ask your brother go to that solicitor and read carefully the agreement, if not understand ask the LA to explain one by one. Or u request the copy 1st and find ur friend who have knowledge about legal terminology.

For your information, even borrowing without any written or agreement (i.e by verbal) the creditor still have a right to sue the debtor and still can go to court as long as the creditor can proof the money transaction. The only can save if the transaction done by cash, so cant trace it out.

The best way is think positively, people loose RM100k will not "duduk diam" and that person will do anything sources to get back his RM100K either via good way or bad way.

So think twice....
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answered on May 8, 2015 at 04:27
by   theknowing
vkpc.

actually friendly loan can include interest if the loan is not being paid off during the given time period.
Moreover based on Moneylenders Act 1951, it is clearly stated as so:-
“includes every person whose business is that of money lending or who carries on or advertises or announces himself or holds himself out in any way as carrying on that business whether or not that person also possesses or earns property or money derived from sources other than the lending of money and whether or not that person carries on the business as a principal or as an agent.”

which means that if the lender has a strong financial record proving he is not doing a "business" by including interest to said amount to the borrower then he would not be prosecuted.
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