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Credit card debts

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asked on Aug 3, 2009 at 07:23
by   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.
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answered on Oct 20, 2009 at 17:06
by   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.
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answered on Oct 20, 2009 at 20:56
by   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?
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answered on Oct 21, 2009 at 00:00
by   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!
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answered on Oct 21, 2009 at 01:14
by   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.
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answered on Oct 21, 2009 at 15:34
by   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
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answered on Oct 21, 2009 at 19:07
by   kate
i was smiling...the icon is wrong ...
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answered on Oct 22, 2009 at 22:34
by   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.
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answered on Oct 23, 2009 at 00:04
by   vkpc
Why you call them up again?
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answered on Oct 23, 2009 at 00:12
by   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.
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answered on Oct 23, 2009 at 00:24
by   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.
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