M’sian Becomes Friend’s Guarantor, Moneylender Demands RM40k for RM10.8k Debt After Friend Dies

A Malaysian man, known as Mr Low, found himself in a financial nightmare after agreeing to act as a guarantor for a friend’s loan. Following his friend’s passing, Mr Low was left to settle an outstanding balance of RM10,800—a sum the moneylender later attempted to inflate to over RM40,000.

Michael Kong Feng Nian, the Special Assistant to Stampin Member of Parliament (MP) Chong Chieng Jen, took to his Facebook page to share the ordeal.

A broken agreement

According to Michael, Mr Low had initially exercised caution: “A few years ago, Mr Low agreed to stand as a guarantor for a friend. Initially, Mr Low asked his friend to deposit the monthly repayments to him first, which he would then transfer to the moneylender to ensure obligations were met.”

“After some time, the friend suggested paying the moneylender directly to ‘save the hassle.’ Trusting his friend, Mr Low agreed. Tragically, the friend has since passed away. Last week, Mr Low received a letter from the moneylender demanding an alleged outstanding sum of RM10,800,” Michael shared.

Upon seeking clarification, Mr Low discovered his deceased friend had stopped making direct payments, leading to the debt.

This image is for illustration purposes only.

Pressure tactics and escalation

Hoping to avoid trouble, Mr Low agreed to pay the RM10,800 within two weeks. However, when he arrived to sign the settlement agreement, the moneylender presented a demand for over RM40,000. When Mr Low refused to sign and tried to leave, he was allegedly pressured and prevented from exiting the office.

He was reportedly only allowed to leave after stating he needed to care for his elderly mother. In response, the moneylender allegedly demanded a photograph and the MyKad details of his mother as “collateral.”

Feeling helpless, he sought Michael’s assistance. After negotiations, the moneylender eventually agreed to the original repayment amount of RM10,800.

“Mr Low has since been able to raise the necessary funds from his family members to fully settle the outstanding amount,” Michael confirmed.

A warning to the public

Michael urged the public to avoid moneylenders and think twice before becoming a guarantor.

“Guarantors are often left bearing the full burden when borrowers are unable—or no longer around—to pay. What begins as a small loan can quickly escalate through excessive charges and aggressive pressure tactics,” he warned.

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