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Can I escape credit card debt by moving overseas?

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asked on Mar 19, 2016 at 22:57
by   sloth
edited on Apr 4, 2016 at 06:10
 
I have accrued about RM4500 in debt from Maybank. I am already overseas in Europe and I cannot pay the debt due to financial problems of moving there. I would like to know what happens to a Malaysian who has not paid his credit card debt and is abroad. I also owe Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) some money.

1. Will they be able to collect if I am overseas with a temporary residence permit?
2. I plan to stay in Europe forever and not come back. Will the European immigration know about my debt in Malaysia?

So far I have not missed any payment from the bank yet. But I cannot make next months payment and I have no job here. Please any advise would be great.
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8 Answers

answered on Mar 20, 2016 at 01:24
by   goonies
Your creditors are powerless to do anything to you unless you ever return to Malaysia. If you are now in First World Europe, why would you ever want to come back to Third World Malaysia?

Your Malaysian credit history will remain unknown in Europe if you do not disclose it.

The system in Malaysia is so stupid. Even if you somehow manage to settle all the debts you may owe, your CTOS blacklist will remain for the rest of your life. You will be hindered forever to apply for future credit in Malaysia, no matter what you do now.

Other than moving to a new land to start afresh, what realistically can any defaulting indebted Malaysian do?

Other than committing suicide?
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answered on Mar 20, 2016 at 01:42
by   sloth
edited Apr 4, 2016 at 06:02
 
Thanks goonies, I also have a PTPTN loan which I need to pay lump-sum of RM24k because I failed my studies. Can I still renew my passport while I'm overseas if PTPTN blacklist me? ...because I need 7 years to acquire a citizenship in Europe, my passport will expire by then.

I need to renew my passport one more time before I'm able to get a citizenship. Your reply greatly appreciated.
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answered on Mar 21, 2016 at 07:17
by   goonies
AFAIK, only those Malaysians who have already been declared bankrupt will not be able to renew their MY passports at Malaysia's Diplomatic Missions overseas.

Both your debt to Maybank as well as your PTPTN outstanding are below the minimum threshold for Bankruptcy which is currently RM30,000.

Even after your MY passport expires, if you have a European ID card/ National Drivers' License, you can still travel freely through more than 20 EU countries via Schengen and even move/settle in any of them permanently if you wish. Since you won't be travelling to Malaysia again, why would you need a valid passport?
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answered on Mar 21, 2016 at 09:25
by   Sloth
edited Apr 4, 2016 at 06:04
 
I need a valid passport because I have to renew my temporary residence permit until I'm able to obtain citizenship but that time my passport will already be expired.
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answered on Mar 21, 2016 at 16:36
by   vkpc
edited Apr 4, 2016 at 06:06
 
I also have a PTPTN loan which I need to pay lump-sum of RM24k because I failed my studies. Can I still renew my passport while I'm overseas if PTPTN blacklist me? ...because I need 7 years to acquire a citizenship in Europe, my passport will expire by then. I need to renew my passport one more time before I'm able to get a citizenship.

You need to write a letter to PTPTN and tell them that you are currently jobless and offer to pay RM50 per month for now. This will prevent PTPTN from blacklisting you with immigration and will buy you time until you get your new citizenship.
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answered on Mar 21, 2016 at 21:52
by   sloth
edited Apr 4, 2016 at 06:08
 
Hi vkpc, thank you for your reply. Do I need to give any kind of documents to prove that I am jobless? Do I need to return to Malaysia to settle this?
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answered on Mar 31, 2016 at 22:25
by   Amarmekber
Your creditors are indeed powerless. But if your credit card debt is owed to a bank, you can rest assured that it will show up on an international credit default database. Credit debtor default databases are now universal. The amount is too small to warrant any action against you. Debt default is not a criminal offence generally.
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answered on Apr 5, 2016 at 06:18
by   helpmepls
Hi Amar, thank you for the reply, I was more concerned about ptptn blacklisting me in immigration which will make me unable to renew my passport... Any advice?
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