Latest Banking and Financial Related News in Malaysia

The Star Online > Nation
Published: Friday August 26, 2011 MYT 3:24:00 PM

PTPTN to adopt friendlier approach with loan defaulters

KUALA LUMPUR: The National Higher Education Fund Corporation (PTPTN) is prepared to negotiate with blacklisted defaulters or those who have been issued with summonses to help them repay their loans, its chairman Datuk Ismail Mohamed Said said.

He said that through a much friendlier approach, the corporation would open its doors to negotiation and work out the loan repayment structure.

"The borrowers and PTPTN officers will discuss the amount of deposit to be paid by the borrowers and the amount of monthly installment as well as how the payment should be made, either through salary deduction or bank's order," he said.

Speaking to reporters after handing over 2,500 goody bags at the Gombak toll plaza here Friday, Ismail said the borrowers could come to PTPTN to negotiate the repayment process.

He said up to July 31 this year, a total of 961,346 borrowers still owed the corporation a total of RM5.43bil.

Of the amount, 715,086 borrowers have started to repay their loans, with RM2.63bil collected thus far.

Some 246,260 or 25.62% have yet to make any payment for their loans, totalling RM1.39bil, while the arrears for those who have started to make repayment but at irregular intervals is RM1.42bil. - Bernama

What is a Mortgage

Every homeowner knows what a mortgage is but do you? Many people have heard that term on movies, television shows, and commercials but don't really know what it really means.

To put it simply, it's a loan where you are using your house as collateral. The difference between this and a normal loan is that your house becomes your backup just in case something happens and you are unable to continue payments.

Mortgages come in many different forms depending on what you are looking for with regards to financing. Some examples are the fixed rate and adjustable type.

These differ in how the payments are set up and whether or not each payment will be influenced by current interest rates across the country.

There are also commercial loans if you are planning on buying an apartment complex or other type of real estate that has the potential to make you money.

Before you decide to buy a home, it's very beneficial to do as much research as possible. You should try to learn about each different type of mortgage and what the payments actually consist of.

Do they change each month? Should you put a lot of money down before setting up payments? It can be very complicated and stressful for almost anyone due to the sheer ending cost of it all.

Owning a home is a dream for many people and you will want to make sure you are well educated on home ownership before you even speak to a broker.

Definition of Foreclosure:
The legal proceedings initiated by a creditor to repossess the collateral for loan that is in default.

USA's largest banks suspend foreclosures

Feb 13, 2009, 12:45pm PST

Wells Fargo, J.P. Morgan Chase, Bank of America and Citigroup Inc. have agreed to halt home foreclosures while the federal government works out a plan to stabilize the nation’s banking industry.

To read more go to:
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2009/02/09/daily93.html?t=printable

Comment by Nan Gehlen on "USA's largest banks suspend foreclosures"
February 13, 2009 4:41PM EST

"I think this is a good step in the right direction for the banking industry. If they would work with home owners instead of against them, they may be able to come to a reasonable agreement for repayment and therefore some of these toxic assets would not be toxic. People do not want to loose their homes, they work hard to achieve the "American dream" but that American dream has turned upside down with housing prices, lost jobs, retirement funds gone, paychecks gone or cut in half and rising fuel and food prices.Hope more can be done to help homeowners retain what they have worked so hard for - at least keep their homes when all else is lost!"

Personal Opinion:

The Malaysia banking industry should follow the same in this hard uncertain time of economic downturn! Not only suspending foreclosures but also bankruptcy against debtors until the economy is very stable. Otherwise it is meaningless to keep increasing the number of foreclosures including bankruptcy. This is not really healthy in the long run.

Bank Negara Malaysia (BNM) should review the bankruptcy & foreclosure laws to allow more breathing space for the increasing number of defaulters/debtors in Malaysia. Recently, the overall interest rate has gone down but it is still marginal and does not make a lot of difference for people to save. Something more attractive should be in place to cushion the current hard impact on the decreasing Global and Asean economy.

Thursday September 24, 2009

Ah Long now offer quick loans via credit cards

GEORGE TOWN: Loan sharks now have a hassle-free modus operandi involving the use of credit cards to issue money to customers while leaving the headache of debt collection to the banks.

Posing as merchants and under the pretence of settling purchase transactions, these Ah Long would swipe the credit cards of customers for the amount loaned plus interest, said state Commercial Crime Investigation Department chief Asst Comm Roslee Chik.

For instance, if a customer wants RM4,000, they will swipe his credit card for RM4,200, including interest.

"The payment is supposedly for the purchase of items such as a refrigerator. When the bank calls up the customer to confirm the purchase, he will confirm it," ACP Roslee told The Star yesterday.

ACP Roslee said the new tactic saved the loan sharks the hassle of going after debtors.

They get the money from the banks, which, in turn, will need to go after the debtors.

"The loan sharks have ways to set up bogus companies," he added.

He said two raids on loan sharks activities last month revealed the latest modus operandi.

He urged bank officers to clarify any transaction with the police if they suspected something amiss.

He said the "merchants" could be charged under Section 420 of the Penal Code for fraud while the card holder could be charged under the same Act for abetting the merchant.

"Furthermore, they will have to pay interest to the loan sharks and the bank, as they will also be charged interest when they can't pay before the due date," ACP Roslee said.

Top Four (4) Credit Card Don'ts

4 Things You Should Never Do with Your Credit Cards

Susan McCarthy, a financial adviser and author of The Value of Money, lists her top four credit card don'ts:

1. Don't make only the minimum payments. This stretches out your payment and, thanks to the interest, significantly increases your overall cost.

2. Don't carry too many cards. Multiple cards make it easier to rack up debt because it's harder to keep track of your spending. Having lots of cards isn't necessarily bad for your credit, but misusing them is. So limit your plastic to two national cards (store cards often carry higher interest rates) that you manage carefully.

3. Don't miss payment due dates. Not only will you be hit with a late fee-as high as $39 on some cards-but your interest rate could also jump. Sign up for online banking or pay over the phone if you're up against the deadline. (You may pay a processing fee, but it will probably be less than the late fee and the possible interest-rate hike.)

4. Don't take cash advances. These advances generally come with sky-high interest rates and service fees, making them a far too expensive way to get cash. Avoid at all costs.

Tuesday July 27, 2010

Ah Long to hang for murder

By K. KASTURI DEWI  (kasturidewi@thestar.com.my)

GEORGE TOWN: Not enough with sentencing them to death, a High Court judge verbally slew two loan sharks here for the murder of a man over a mere RM150.

The money was debt owed to the two men by the victim's brother four years ago.

"You did not show any sympathy to the victim, as though there is no law in your life," Justice Abdul Halim Aman told Tan How Choon, 34, and Poh Weng Nam, 31, yesterday.

"Other people's lives seem to be of no value to you. What is important to you is money, money, money," he lashed out, when meting out the death sentence on Tan and Poh.

The judge said what the two men did to their victim, Lee Lai Beng, 44, was cruel and inhumane, especially since the murdered man did not even owe them any money.

Tan, a businessman, and Poh, a DVD seller, were found guilty of murdering Lee along Jalan Pantai Bersih in Butterworth at 10pm on Sept 31, 2006.

They were charged with committing the offence together with five others still at large.

A third accused, Ho Han Choon, 30, who was jointly charged with Tan and Poh, had been acquitted and discharged after the court ruled that no common intention was proven that he was involved in the crime.

Justice Abdul Halim told Tan and Poh: "There is only one conclusion. You acted like uncivilised people."

"The deceased died at a young age and because of this a wife lost a husband, his children lost a father, his parents lost a son and his younger brother lost a brother."

Justice Abdul Halim added that Lee had nothing to do with the money owed to them by his (Lee's) brother.

"The deceased had nothing to do with his brother's debt but he was still murdered for reasons only known to both of you," the judge said.

Justice Abdul Halim said the two men had slashed and stabbed Lee as well as almost severing the left hand of his younger brother.

The judge said the defence of both Tan and Poh were bare denials and afterthoughts.

He said the testimony by four witnesses, including Lee's brother, was consistent with the prosecution's case.

"The testimony of the deceased's brother was so consistent and was not affected even after the defence had put him through intensive cross-examination," he added.

My comment:

After reading the news below, it is really very inhuman!, barbaric!, and cruel! for the Ah Longs to murder the victim's brother. Although I do not wish them to be hanged but their act is really beyond any human mercy but ONLY death sentence! might serve them right! I hope at least this can send a very strong message especially to all the overhanded and aggressive Ah Longs that no one is above the heavenly law! Can we imagine how much mental and emotional agony this has caused to the murdered's wife, children, parents, sisters and brothers.

I believe we should also fight for justice and haul up all collection agents who are harassing and threatening debtors to the relevant authorities such as the Malaysian Communications and Multimedia Commission (MCMC) and court and let the law or regulation of justice to straigthen them up once and for all!

15 Contributory Factors of Personal Debt Problems

By Kun Umirtu

The only way you can get out of your debt problems is to understand the reason you got your first debt. Lots of evidences have shown that...You won't be able to save money although your salary/income has increased. You won't be able to save although your car debt has been paid. You won't be able to save although your kids already can afford their own life. And even if you have 1 billion, right in your hand right now, still, you can't even save a single penny.

How could this happen? Why are you still stuck with your debt problems? The reason is, you can only save money if saving has become an emotional habit. You can only save if you treat your money in a different way. So these are the 15 contributory factors that cause you trapped in your debt problems. Hope this list can be one of your debt problems advices.

1. You bought things that you don't really need.

Stop buying! If necessary, avoid the shopping malls! It's because the shopping malls are the sources of your personal debt. There is no reason to spoil yourself with buying all the branded stuffs you never really need.

2. You used your credit card to buy stuffs that you can't afford.

If you don't have enough cash to buy it today, then don't buy it! As simple as that. Forcing it will just cause a credit card problem.

3. You think that certain brands define your social status, make you look "trendy", stylish, and so on.

A car gets you from place to place. A wallet is some kind of container where you can put your money and your important letters. Sunglasses protect your eyes from the sunlight, while a t-shirt keeps you warm. If you always pay really expensive to get those products just for social status, "trendy", or stylish look, rather than consider about their function, sooner or later, you'll be trapped in a debt problem.

4. You're buying a new car every few years

Look at my previous point. A car gets you from place to place. If you're buying a new car every few years although your old one still works perfectly well, then you are trying hard to impress people in a wrong way... And you - yourself, is trapped in one of the debt problems, heading to a bankruptcy.

5. You bought something that you can actually borrow or rent.

If you use it only once in a while, why don't you just borrow it from a friend, or why don't you just rent it? For instance, I almost bought a ladder I will probably use only once or twice a year, while I can just simply borrow it from my parents.

6. You paid a normal price for every products/services that you get.

You can save up to 10 million IDR every year, if only you want to wait and shop from the outlet stores that are giving out discounts.

7. You own (or rent) a house that is actually bigger than what you need.

When you buy or rent a house that's actually bigger than what you really need, that means you will spend more money to pay for higher monthly fees, higher maintenance cost, and not to mention the need to 'furnish' the empty spaces. This is clearly, will cause a new debt problem.

8. You don't have a budget plan.

Do you think that getting and waiting for more money will fix your financial situation itself? If that's what you're thinking, then you are seriously wrong! It's necessary to make a serious budget plan, in order to make your debt problems disappear and start building your wealth. So start making your budget plan right now!

9. You didn't optimize your capital.

You have to give a chance for your money to make money (leverage). Every penny you have, don't care how small it is, have to be invested. If you don't invest your capital, then your money will lose its value due to inflation.

10. You are married to a 'shopping-oriented' spouse.

You won't be able to get out of your debt problems if you are married to someone that always spend the money you have earned. So help your soul mate to be responsible for the financial problems that are happening at the present, unless you want to undergo more problematic life in the future.

11. You never get any basic money management education

Financial skills that are needed to handle financial problems were not born naturally. You have to get enough education on money management, whether it's from formal education or self-education. If you don't try to learn from anyone, then you will be more likely to stay within your debt problems.

12. You have a 'get rich fast' mentality

There are perhaps only 0,01 % of people that got instant wealth, for instance, from parent's inheritance. The rest of the people, that means around 99,99%, didn't get their wealth instantly. So if you spend your time and money to practice a 'get rich fast' scheme, then more likely that debt problems, not wealth, that are always going to bind you.

13. You have bad habits

Drinking and gambling are perfect examples of so many bad habits that are ever existed, where you decide to exchange your short-time happiness with a long-term misery, which are the debt problems and also discomfort.

14. You wasted lots of your own time

They said, "Time is money", and let me add something: Time is more precious than money. Time is the biggest thing in life. You can search for lost money, but time is irreplaceable. So if you are failed to manage your time, then surely you will fail to manage your money... And you could get trapped deeper in your debt problems. So focus your time and energy only on important issues. Forget the others.

15. You don't take a good care of your health.

Always take care of your own body and mind! If you don't care about this, then health problems will drain your money, and if this keeps going on, surely you'll get financial problems, in the long term.

Keep this in mind. Debt problems are actually can be avoided and exterminated before it's too late. It only needs a little effort, education, and determination, to make everything possible. Like I have said before, live a simple life. Don't spend your money only to impress people. Don't live your life with a mindset that wealth is always measured with material things. Manage your money wisely so that it's not money that will control you. Make a change!!

Kun Umirtu

Friday March 18, 2011 MYT 2:33:40 PM
Bank Negara sets new rules for credit cards

Minimum annual income requirement raised to RM24,000

KUALA LUMPUR: The minimum annual income requirement for credit card eligibility has been raised to RM24,000 from RM18,000, effective immediately, in a move to keep household debt at manageable levels, Bank Negara announced Friday.

For cardholders earning RM36,000 per annum and less, they can only hold credit cards from a maximum of two issuers.

The maximum credit limit for those earning less than RM36,000 has also been capped to double the monthly income of the cardholder.

The central bank said while credit card debt remained at a manageable level, these measures were being taken to promote sound financial and debt management.

"It's a pre-emptive move to ensure that the prudent level of household debt remains at that level moving forward," Bank Negara's deputy governor Nor Shamsiah Mohd Yunus told reporters.

Ways to Boost Your Retirement by $50K

Aside from hitting the lottery or scoring big on a game show, there are numerous ways to add an extra $50,000 or more to your retirement savings.

1. Get off the coffee grind
2. Tuck away $100
3. Pay off high-interest loans
4. Snip your credit cards
5. Buy a cheaper car
6. Take full advantage of benefits
7. Use the catch-up provision
...

To read more go to:

finance.yahoo.com/focus-retirement/article/113178/ways-boost-retirement-50k-thestreet?mod=fidelity-buildingwealth&cat=fidelity_2010_building_wealth

What are the limitation of actions against guarantors? When will your liabilities as a guarantor be discharged?

Limitation Of Action Against Guarantors

• Where a guarantee is made payable on demand, a financial institution cannot bring an action against the guarantor until a demand has in fact been made under the guarantee against the guarantor

• Depending on the provisions of the contract of guarantee, a demand may be served by hand, by ordinary post or by registered mail

• The financial institution has six years from the date of the first demand to bring legal action against the guarantor

Discharge Of Guarantors

• A guarantor is released from his obligations under a guarantee upon full payment of the debt owing to the financial institution

• For a guarantee to be enforceable against the guarantor, the terms of a guarantee must be adhered to by the financial institution

Ensure that you are aware of your liabilities in the event that variations are made to the terms and conditions of the loan.

The Star Online > Nation
Published: Friday August 19, 2011 MYT 4:14:00 PM
Updated: Friday August 19, 2011 MYT 4:15:08 PM

Court rules CTOS not liable for negligence for info to banks

KUALA LUMPUR: A High Court ruled Friday that CTOS Sdn Bhd was not liable for negligence and invasion of privacy for supplying information to banks on a “bankruptcy notice” against a university lecturer.

High Court judge Justice V.T.Singham held that the banks had been advised by CTOS through its explanatory note available in its reports that information supplied to them should be verified on its current status.

In the suit, Universiti Teknologi Malaysia (UTM) lecturer Mohamad Zaid Johan sued CTOS claiming that information about him that he should be blacklisted had been supplied to banks and other financial institutions.

Mohamad Zaid claimed that he failed to get loans from the banks over the conduct of CTOS which tantamount to invasion of his privacy.

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