By DayakDaily Team
KUCHING, March 25: In a cautionary tale highlighting the risks associated with informal lending, an individual named Mr Lau found himself entangled in a financial predicament that escalated into a distressing confrontation at his family home.
According to Michael Kong Feng Nian, special assistant to Sarawak Democratic Action Party (DAP) Chong Chieng Jen, the ordeal began when Mr Lau owed a friend a substantial sum of RM6,500.
“They (Mr Lau and his friend) agreed on a repayment plan consisting of 13 monthly instalments of RM500 each.
“However, unforeseen circumstances arose when Mr Lau lost his job in December 2023, resulting in missed payments.
“With a remaining balance of RM3,500, Mr Lau agreed to pay his friend some ‘interest’ as a gesture of goodwill,” he said in a statement issued today.
Kong went on to say that tensions rose when Mr Lau began to miss payments for months repeatedly.
The situation escalated when Mr Lau was confronted at his family home by unfamiliar individuals demanding repayment, causing distress to his elderly parents and family members.
“Upon hearing Mr Lau’s predicament, I intervened to help mediate the situation. I am thankful for both parties’ willingness to resolve the matter amicably without further escalation.
“While this incident ended positively, it serves as a reminder of the risks associated with informal lending arrangements.”
Kong also stated that it is critical to carefully consider all terms and one’s personal ability to repay before agreeing to any financial arrangements.
He further emphasised the importance of clear communication and, when needed, seeking legal advice to avoid any potential misunderstandings or conflicts.
“It’s crucial to exercise caution and discretion when dealing with financial matters, especially when it involves borrowing or lending money,” he added. — DayakDaily
