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Credit card debts
Credit card debts and consequences

New MessageCredit card debts (modified 0 times) kate
I have a collective debts of RM35K from 5 credit cards and 2 personal loans from 5 different banks. Can banks collectively join together to sue me under bankruptcy?

I also lost my job due to this economic downturn and am not able to make the payments to the bank for my credit cards and loans (RM2500 per month). I have already informed the banks but the customer service personnel who calls me almost everyday does not seem to get it and says that i need to make the payment somehow or rather but i do not have any means to do so. How can i ask them to freeze or wait until i get another job. I am jobless for 2 months already. I have always been a prompt paymaster for 3 YEARS and this is really unbearable.

The other thing is whether i can negotiate a fixed amount to pay to the #### banks so that the interest do not rise. i have stopped charging my card altogether.

03 Aug, 2009 02:23:41

New MessageRE:Credit card debts (modified 0 times) notalawyer
Can banks collectively join together to sue me under bankruptcy?
03 Aug, 2009 11:27:40

New MessageRE:Credit card debts (modified 0 times) Saiful
Hai kate, Don't worry.Please go and seek help from AKPK.Please, don't be shy to go there.I have personally been there,and there huge number rich people there.
03 Aug, 2009 19:52:47

New MessageRE:Credit card debts (modified 0 times) Saiful
Sorry for the previous reply.Actually it goes like this......I have personally been to AKPK and i have seen so many rich and educated people there.All this people were badly affected by the crisis.The AKPK officers are so wonderful and willing to help us to the bottom.So,KATE DEAR please dont hesitate and try to give a try,ok.
03 Aug, 2009 21:38:44

New MessageRE:Credit card debts (modified 0 times) kate
hi thanks for da reply. the thing is, i still haven't got a job yet. its more than 4 months now. i called akpk but they told me i need to produce 3 months salary slip to be eligible for the plan, which i obviously don't have as to date. And i receive a letter from Citibank stating that my account has been transferred to non-performing loan and the debt collecting agency will be handling this from hereon. I currently owe RM7800 for my citibank credit card, RM1900 for one personal loan and RM8600 for another personal loan (all from citibank). I read earlier that all three accounts can be collectively summed up to sue me for bankruptcy once it reaches a total of RM30k. The late charges and interest on my credit card alone totals to RM150 amount, n definitely will reach RM30K before 6 years. What can i possibly do? I'm trying so hard to get a job, but the market right now is ridiculous.
12 Oct, 2009 17:06:30

New MessageRE:Credit card debts (modified 0 times) vkpc
What kind of job you are looking for?
12 Oct, 2009 17:31:48

New MessageRE:Credit card debts (modified 0 times) kate
i just received a call from UOB bank. They ask me to make a payment of RM200 by end of this month to avoid my account being moved to some judgement thing. So what do i do. I have not paid for 4 months and my interest has already reached RM500. The total amount on my card is now RM4500.
19 Oct, 2009 16:52:55

New MessageRE:Credit card debts (modified 0 times) vkpc
Why don't you get a rich boyfren?
Then all problems solved.
19 Oct, 2009 17:33:21

New MessageRE:Credit card debts (modified 0 times) kate
i appreciate proper and helpful answers. Thanks.
19 Oct, 2009 17:50:32

New MessageRE:Credit card debts (modified 0 times) notalawyer
Limitation Act 1953
Section 6.(4) An action to recover any penalty or forfeiture or sum by
way of penalty or forfeiture recoverable by virtue of any written
law shall not be brought after the expiration of one year from the
date on which the cause of action accrued

This means that after 1 year of no payment, the bank cannot claim from you
1. late payment charges or
2. additional interest on late payment or
3. any other penalties charges

That is why they are pushing you to pay RM 200 so they have another year to charge you penalties.

19 Oct, 2009 18:01:47

New MessageRE:Credit card debts (modified 0 times) kate
thanks a lot. that was really helpful. I just got a job last week. So i called UOB bank yesterday to negotiate a settlement. They said that i can settle the pending RM4500 within 12 months at 0% interest. They will basically convert to term loan for one year at no interest, but i still need to make an initial payment of RM200 to them. So do you think i should go ahead and make the payment since i want to settle with them?
20 Oct, 2009 10:16:16

New MessageRE:Credit card debts (modified 0 times) notalawyer
I think should be Ok if they don't force you to sign anything and if you are sure you will have enough money every month.
I wouldn't sign anything if I were you.
You should ask them for a letter confirming the new zero interest rate, installment amount and other fine print.
Read the fine prints carefully.

Some banks are really bad.
The fine print may state that if you miss any installment, they can charge you 18% interest plus other penalties back and backdated.
That means after paying 10 months and you miss an installment, you may find that you still owe RM 4,000 and it's all legal.

20 Oct, 2009 12:06:49

New MessageRE:Credit card debts (modified 0 times) kate
wow. ok. so should i just not pay anything for one year so that it will fall under the limitation act, thereafter they can't charge me any interest or penalties?

And after the one year period, i make monthly regular payments to them?

Another thing, this guy called me yesterday and informed me that he is a lawyer and he wasn't too keen on taking files from the bank where the amount is so small. Then he ask me to make payment to them bank so that he can return the file back to them. I told him that i can only start making payment by end of nov, then he told me that he couldn't help me and he have to proceed with some judgement thing. Based on the stuff i read here, i said ok la.

Then he called me again today from his mobile to ask me to pay up. Honestly, he really don't sound like a lawyer at all, more like a debt collector. Is it possible that he is pretending?

20 Oct, 2009 15:56:39

New MessageCredit card debts (modified 0 times) James Huang
hi kate,

The person calling you is most likely from the collection agency. Normally lawyer
does not call like this but it is common that debt collectors like to introduce
that they are from the legal dept or they are lawyers. In reality, lawyer buruk!

Since your amount is not big, the bank may find it worthless to pursue your case.
I heard one time that debt RM5000 below is not worth to hire lawyer to sue you
though they may summon you to court or pressure you in one way or another.
The bank may as well write the debt off. Sometimes, i advise the bank to write it
off and spend the time and money to do good for the society rather than chasing debt
that really cannot be recovered. The banks understand but they have pride too not to
give up and like to flex their muscles upon ignorant debtors.

Actually, the UOB bank is at your mercy. The reason i said is due to the above
explanation. If u really want to settle, you may as well settle one lump sum if u can.
U can tell the bank to slash the RM4500 to even RM2000 as one lump sum payment.
Tell the bank - take it or get nothing !!! - no need to beg them. That's it.

Even if the bank gets RM2000 and loses a bit - the bank is relieved of meddling
into petty debts. The bank I am sure has better things to do than chasing small
flies here & there and in the end - cannot even recover one cent!!! What's the point?
But for the collection agencies, they are actively chasing debtors to get commissions!

20 Oct, 2009 19:00:43

New MessageRE:Credit card debts (modified 0 times) notalawyer
"Thereafter they can't charge me any interest or penalties?"

Don't be mistaken, after 1 year they can't charge penalties or penalty interest, but they can charge normal interest.
After 6 years, they can't charge anymore interest and can't sue you if they haven't.

Jame's advice is good.

20 Oct, 2009 20:14:31

New MessageRE:Credit card debts (modified 0 times) kate
Seriously, thanks a lot. All your advices really helped a lot. I confirm that he is a debt collector as he called me even today. No lawyer has that amount of time to call a debtor everyday I called the UOB agent also to ask her about the 1 year 0 interest plan and ask her for black n white. She doesn't seem to keen.

I would rather follow your advise and will scrimp and save and negotiate a full settlement in two months. Thats one down.

Thanks again

21 Oct, 2009 10:34:28

New MessageRE:Credit card debts (modified 0 times) kate
i was smiling...the icon is wrong ...
21 Oct, 2009 14:07:27

New MessageRE:Credit card debts (modified 0 times) kate
hi guys,

I spoke to the officer from UOB bank on the settlement and she was ####ed off that i want to only pay RM2000. she said no and that she will sue me. now i'm really scared that i made her mad enough to go ahead with whatever legal avenues available to make my life miserable What i can do about this. I thank you in advance for your assistance.

22 Oct, 2009 17:34:52

New MessageRE:Credit card debts (modified 0 times) vkpc
Why you call them up again?
22 Oct, 2009 19:04:57

New MessageRE:Credit card debts (modified 0 times) Obama
Anyway, it is a normal process for banks to proceed with legal action.
If you do not have any assets like house, big car, etc - there is nothing to fear.
Normally WSS is not executed unless you have expensive artifacts at home.

The legal action the bank takes is to summon you to court.
In court, either you admit to their claim of debt or ask the court
for more time to find a lawyer. If you admit - normally nothing drastic
happens to you. The court will just ask you to settle with the bank.
Worst come to worst, the bank will just blacklist you in the CTOS.

They cannot sue you bankruptcy because it will takes many years to reach
RM30k to qualify you for bankruptcy. It is unlikely WSS is executed.
Kate, you can continue to live a normal life. Ignorance can breed FEAR.
And FEAR means "False Evidences Appearing Real!". Cheers.

22 Oct, 2009 19:12:09

New MessageRE:Credit card debts (modified 0 times) Obama
Hi Kate,

Normally, you can drag the case longer by finding loop holes in the summon.
Like wrong calculation of the debt, wrong account number, even wrong IC,or
ask to see the original contract to verify the signature, etc.

Another way is ask more time to look for a proper and affordable lawyer to
represent you. If you do not attend the court, a default judgement is automatically
entered against you as if you have admitted to their claim of debt and give them
the consent to proceed further legal action against you. Do not fear attending
court. They won't catch you and put you into jail.

22 Oct, 2009 19:24:50

New MessageRE:Credit card debts (modified 0 times) notalawyer
Hi Kate,
This is my advice to you.
They can do nothing to you.
They can't take your house or car.
They can't ask other banks to freeze your bank accounts.
You are already blacklisted anyway.
After they summon you and you let them win, they still can't do anything to you.
After 1 year they can't claim any penalty charges from you.
After 6 years, they can't even take your bicycle.
If they call you again, ask them to go fly kite.
22 Oct, 2009 20:42:24

New MessageRE:Credit card debts (modified 0 times) kate
ok thanks a lot. just another question. I owe citibank RM7500 (credit card), RM1900 & RM8500 (personal loan).

a) They can join the amount and sue me rite after it reaches RM30k.
b) I paid in Jan, Feb, Apr about RM900. Then i didn't pay anything until Jun. In July i paid another RM200. An agent named Coco called me yesterday to ask me to make a payment of RM160 as minimum payment so that no legal action will be taken against me. And she said that i needed to pay by today else i will suffer legal consequences. I told her that another agent from citibank informed me that it only goes to legal if i didn't pay for six months in a row. She informed me that since i didn't pay for Mar, May, Jun, Aug, Sep, Oct, it totalled up to six month so she will move it to legal. It it right?

23 Oct, 2009 15:25:07

New MessageRE:Credit card debts (modified 0 times) vkpc
She already told you today is the last day right?
So tomorrow or the next days when anybody call again you tell them that she say that day was the last day already,
so no need to make anymore payment because it already moved to legal.

They will then tell you that day was not the last day, today is really really the last day.

23 Oct, 2009 16:31:52

New MessageRE:Credit card debts (modified 0 times) wei ling

May I know why you own bank so much money?
Why you use your credit card if you know you cant pay them?

23 Oct, 2009 16:42:40

New MessageRE:Credit card debts (modified 0 times) weiling

May I know why you own bank so much money?
Why you use your credit card if you know you cant pay them?

23 Oct, 2009 16:43:27

New MessageRE:Credit card debts (modified 0 times) kate
i took the loans to pay my my exam fees. I was using the credit card for the past 3 years and paying promptly. After i got retrenched, i could pay for almost 6 months, so now its a snowballing effect that i cannot handle.
23 Oct, 2009 16:55:12

New MessageRE:Credit card debts (modified 0 times) notalawyer
a) They can join the amount and sue me rite after it reaches RM30k.
Wrong. RM 7500 cannot reach 30k in 6 years time. ( without penalties like late charges )
So most likely, they will sue in less than 1 years time. ( to lock in the penalty charges )

After they win, they still can't make you a bankrupt because it is less than 30k.
It is unlikely they will try WSS, Garnishment or Judgment Debtor Summons as well, because the amount is too small.

If you pay them a little like RM 200 each time, you will keep paying until you are 100 years old.

23 Oct, 2009 17:00:02

New MessageRE:Credit card debts (modified 0 times) kate
thanks a lot notalawyer. You've been of great help.
26 Oct, 2009 17:43:12

New MessageRE:Credit card debts (modified 0 times) tokan
hai kate.utk pengetahuan you,bank bila-bila masa blh proceed with wss if tiada payment dr pihak you.wss boleh diambil dr jumlah rm1 sehingga rm1000++ ke atas.tapi kate you tidak perlu blh tulis letter dkt bank negara regarding this problem.the bank negara will find the solution for you.
23 Jul, 2010 18:05:30

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