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Wednesday, January 2, 2013

ASK LIBBY!



A FAMILY MEMBER IS REFUSING TO PAY ME BACK AFTER BORROWING MONEY FROM ME. WHAT CAN I DO?

A family member recently borrowed some money from me. Now that she is financially stable, she is refusing to pay me back. What should I do? Also, she says if I continue to ask her when she is going to pay me back, she will report my actions as loansharking. Is that a valid charge ? 


There are two parts to your question. 1) Will I be charged for loansharking if I try to recover money from my relative? 


According to the following webpage by the Singapore Police Force (SPF) athttp://www.spf.gov.sg/ahlong/index.htm, a person can be charged for loansharking only if he lends the money illegally or assists illegal moneylenders by the following acts: Harassing the debtor (e.g, locking the gates, vandalising the walls, sending hell notes etc); debt collection; buying SIM cards for loan sharks; providing transport for runners etc. 



If you did not lend money illegally with the intention to profit from the interest, but had merely lent it as a concerned friend or relative, then it is unlikely that you could be charged for loansharking if you have not acted violently, harassed the debtor or mounted any threats of violence or destruction of property in the process of retrieving the loan. 



2) What should you do to recover money that you have loaned to your relative? 



If you have tried talking to her and that fails to work, you could talk to another family member whom she respects and is able to give her the right advice. 



If this still fails, you might want to take legal action. It will be helpful if you have proof, such as IOUs, written notes or a record of internet transfer. If you have given the borrower a cheque, you can write to the bank for copies of the encashed cheque as evidence. If you have indisputable evidence, you can issue a writ of summons, and if the borrower does not make a respond to the court in 14 days, or pay up in 21 days, the lender can file a bankruptcy petition against the borrower. Courts will appoint an officer to distribute the bankrupt’s assets to the lenders. 



For avenues to receive free legal advice regarding credit counselling, please see the links given at Credit Counselling Singapore at http://www.ccs.org.sg/link.php



Please note that the above general information given does not constitute legal advice. For specific advice, we suggest that you seek the help of legal professionals. 

Ref;Stomp

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