Hi I have a friend who borrowed from a so called license money lender. He is charged 22% monthly interest. He show me his statement it shows the Effective Interest Rate is about 2400++%. I check with the Registry they says they are only allow to charge 20% EIR for unsucured loan.
He has been paying the interest for the past few months and the amount of interest he had paid is well about the priciple amount he borrow and the principle is never reduced.
So I advise him to lodge a case at the Small Claim Trubunal against the money lender. Is it a good idea to just go ahead or should I advise him to try negotiate with the money lender first prior to lodging a complain and claim against the money lender.
Anyone can advice?