Kong mediates for man with outstanding debts due to loss of job
KUCHING: The people need to assess their financial situation and repayment ability before seeking ‘loan’ from a third party such as a friend, said Michael Kong.
The special assistant to Stampin MP Chong Chieng Jen gave this advice after recently helping a man, identified as Lau, deal with a financial challenge.
“Lau had borrowed RM6,500 from a friend, who offered an instalment payment of RM500 each month for a period of 13 months, but later found himself unable to settle it all due to unforeseen circumstances,” said Kong in a statement yesterday.
He said Lau lost his job in December last year, resulting in missed payments.
Since Lau temporarily lost his means to repay the remaining debt, he agreed to pay his friend some ‘interest’ as a gesture of goodwill, according to Kong.
“Unfortunately, tensions escalated when Mr Lau started to continue missing payments for months. With no sign of settlement any time soon, Mr
Lau was confronted at his family home regarding the outstanding amount.
“The presence of unfamiliar individuals demanding repayment caused stress to his elderly parents and family members,” he said.
Kong said he had to intervene and mediate between the two parties after Lau approached him for assistance.
He was 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. It’s essential to carefully consider all terms and one’s personal ability to repay before agreeing to any financial arrangement.
“Effective communication and, if necessary legal guidance, are essential to prevent misunderstandings and conflicts. It’s crucial to exercise caution and discretion when dealing with financial matters, especially when it involves borrowing or lending money,” he added.