Outstanding Credit Card Debt > 8 years

Hi there,

I've defaulted on the repayments for the MBF card since around 8 years ago and recently received notices demanding repayment of amount 70K+ (principal sum around 10K in 2002). I made contact last week by emailing to Ambank stating my intent for a one-time full settlement of amount 20K, which they promptly accepted (I've also stupidly inserted my contact nos. & address). My wife does not agree to this settlement as she mentioned that debts above 6 years need not be repaid. Please kindly assist me by answering the following queries:-

1) Is my wife correct in referring to the regulations within the Limitation Act? If so, does it mean that
   the cycle is reset upon my recent correspondence with the bank?
2) Will the bank initiate bankruptcy to me? Will becoming a bankrupt hinder my application for another
   country's citizenship?
3) If no repayment is required (Limitation Act), will my future credit applications be affected?

Regards

1) Is my wife correct in referring to the regulations within the Limitation Act? If so, does it mean that
the cycle is reset upon my recent correspondence with the bank?

ANS: According to the Limitation Act, if 6 years have passed since your last payment, the bank cannot sue you bankruptcy nor take any legal action. Correspondence with the bank does not reset the cycle as long as you did not make any payment since 6 years or more ago.

2) Will the bank initiate bankruptcy to me? Will becoming a bankrupt hinder my application for another
country's citizenship?

ANS: If the Limitation Act of 6 years is applicable to you, you are a free man now and the bank cannot sue you bankruptcy. Bankruptcy may affect your application for another country's citizenship and also depends on that country's regulation and checking system.

3) If no repayment is required (Limitation Act), will my future credit applications be affected?

ANS: There is a process to clear your blacklist in the "C-TOS" or "C-CRIS" so that your future credit applications will not be affected. You need to show proof that you are now free from debts.

I hope notalawyer or vkpc or anybody can help to enlighten/share further on my answers above. Thanks

Hi George,

Many thanks for the prompt replies and hope you can help me on the following:-

I presume the Limitation Act is applicable? since the last received recovery notice (April 2010) indicates "107 months since last repayment"?

If the Limitation Act applies and I am exempted from making repayments, how do I proceed to clear my blacklist from "C-TOS" or "C-CRIS"?

Regards

Hi Cubiloskov,

I am not sure how you can clear your name from the record in CCRIS or CTOS.
May be u want to first check if there is any such record.
Hope some forumers here can advise you on the matter.

The link below is the FAQs on CCRIS. Hope it can enlighten further.

http://creditbureau.bnm.gov.my/index.php?ch=8&pg=20&ac=82

@ Cubiloskov
The web-link below is a forum on CCRIS/CTOS and questions
were posted there on how to clear/update any bad records.

http://forum.lowyat.net/topic/859651

@Cubiloskov

Regarding your question, "Will becoming a bankrupt hinder my application for another country's citizenship?", if both Singapore's PR and citizenship application forms are any guide for other countries too, the answer to your question is a NO but if that country you are applying to be a citizen of does not allow dual citizenship, you will need to renounce your M'sian one.

However, concerning whether a bankrupt is allowed to renounce his/her M'sian citizenship, I wish someone here has a concrete answer, I too am waiting (and can't wait) for that day to forever cut all ties with Bolehland!

Hi George/Jasmine/1818,

Thank you all very much for your kind assistance in this forum. What I'll do next is probably ignore the repayment since they cannot make me a bankrupt nor take necessary legal actions. Although relieved through these information learnt in this forum, I am still remorseful of the fact that the repayment defaults were of my own doing and the bank is not to be blamed for my rashful spending trends many years ago.

Regards

It is not your fault that you are unable to repay the credit card.
It is the bank's fault.  They wrongly qualified you. ------->  Taken from William Chan's book.

hi there, I hv same situation with this thread. Ambank, MBF card
my principal sum 3k, never payment for 8 years,  been rise to 15k.

I received an offer for 7k, what should I do? I am difficult now, that was failure in bisness.
I hv made a clear for another bank (International bank) with same figure of principal sum.

I don't get what mention here of 6 years criteria?
Can anyone give me direction? guide?