Many of us have been in situations where we’ve lent money or provided services to someone, only to be left waiting endlessly for repayment.
Whether it’s a friend who hasn’t returned a loan or someone who hasn’t paid for a service, dealing with unpaid debts can be frustrating and stressful.
But instead of letting these disputes drag on, there’s a practical, cost-effective solution available in Malaysia: Small Claims Court.
If you’ve ever been in a situation where someone owes you money but the thought of hiring a lawyer and dealing with legal fees has held you back, this guide could be a game changer.
The Small Claims Court is specifically designed to help everyday Malaysians recover small sums of money with minimal hassle. And the best part? The process is simple and can be done all on your own.
What is the Small Claims Court?
The Small Claims Court is a special branch of the Magistrates’ Court, designed to handle minor financial disputes quickly and affordably. The court focuses on helping people recover small sums of money or goods owed to them, and it keeps costs low by prohibiting the use of lawyers, allowing individuals to file claims on their own.
The filing fee is just RM20, making it a more accessible option for anyone looking to resolve unpaid debts, services not rendered, or disputes involving damaged goods.
Conditions for filing a claim
Before heading to court, there are a few conditions you need to be aware of:
- The claim must be under RM5,000
- Neither party can be represented by a lawyer
- The claimant must be an individual, not a company or organisation
What can you use it for?
The Small Claims Court can help you with several types of claims, including:
- Recovering unpaid debts (perhaps someone borrowed money and never paid it back)
- Claiming goods that were promised but not delivered
- Recovering payment for services that were never completed or properly compensated
- Disputing rental issues
- Compensation for damaged goods
- Claims for services or performances that were not delivered
How do I file a claim?
If you’ve decided that the Small Claims Court is the best route for you, here’s how you can get started:
1. Find your nearest Magistrates’ Court
Find your nearest Magistrates’ Court and visit their Registration Office during business hours to begin the process. The claim can be filed in any Magistrates’ Court across the country.
2. Fill Out Form 198
This is the most important part of starting your claim. You’ll need to complete Form 198, which is available for free at the court. Make sure to include all the important details: the amount you’re claiming, the reason for the claim, and any relevant dates or events. You’ll need to fill out four copies and sign each one.
3. File the Claim
Once the form is complete, submit it to the court’s Registration Office along with the RM20 filing fee. The office will stamp all copies of the form and assign a date for your hearing.
4. Serve the form to the Defendant
The final step is serving the claim form to the person who owes you money, known as the defendant. This is typically done by sending it to their last known address.
By following these steps, Malaysians can use the Small Claims Court to recover unpaid debts or resolve disputes quickly without the complications of hiring a lawyer.
