The High Court yesterday ruled that our client need not pay on a guarantee he had provided to a lender.
Judicial Commissioner Tan Siong Thye held that the loan was tainted under the Moneylenders Act. As such the guarantee could not be enforced by the lender against the guarantor.
This was an unfortunate case involving two innocent victims of a local advanced money scam. The borrower promised the lender huge rewards, up to 100% rewards in 4 to 6 weeks. The lender said in court that she was not interested in such rewards but the Judicial Commissioner found that, as a shrewd businesswoman, it was incredible that she would lend without a reward.
We acted for the successful guarantor.