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Can I be sued in Court by banks for credit card debts after 10 years? Can the banks freeze my bank and EPF accounts?

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asked on Apr 17, 2010 at 20:10
by   jane
edited on May 17, 2016 at 05:15
 
I am so curious to find the solutions to my problems and so happy that finally I found the right forum to talk about it, hope notalawyer can advise me on these issues:

Back in 1999, I had 3 credit cards and due to me losing my job a year later, I haven't paid those debts until just recently in April 2010, 2 of the 3 banks called demanding payment. I know they are from debt collectors but they claim they are the banks' legal department. I checked with in CTOS, only 1 bank issued summons in year 2001.

1. After 10 years, do I still need to pay to the bank that has blacklisted me with CTOS?

The amount stated was RM2830 as appeared in CTOS report year 2001, and in April 2010 the collector called informing the amount to date is already RM31,000. They demanded me to pay RM500 as initial payment and I did pay and promised to call back (after 1st cheque payment has been cleared in their system) to discuss ways for me to settle the outstanding. However, after 2 weeks no return calls from the debt agency. Should I ignore or should I continue paying them since they have blacklisted me. Do I have the rights to settle only up to 6 years total debt? If I choose not to pay them, can they make me a bankrupt now the outstanding has reach more than RM30,000?

The other 2 banks did not issue any summons, however one of the banks harassed me up to Human resource personnel asking my contact number and therefore:

2. Should I pay their demand even though no summons issued yet? Does the LIMITATION ACT apply to my case?

3. Can they sue me after 10 years or demand payments from me after 10 years?

4. Can the bank declares me a bankrupt at this stage even though no summons issued after 10 years?

5. Can they take any court actions after 10 years?

6. Will these debts collectors OR banks able to freeze my bank account, property or my EPF (KWSP)? Should I be able to withdraw my EPF once I reach the age of 55 even though I don't settle all these debts?

7. Will the Immigration Department decline to renew my passport?

8. Can banks decline my NEW loan applications with these old record (summon not settled as appeared in CTOS 10 years ago)?

Please help me clarify. I'm 100% SURE all these calls were NOT made from the Bank STAFF as the way they talk like AH LONG, there is no way the bank staff will talk rudely as they know WE can always make a complaint to Bank Negara Malaysia (BNM).
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answered on Apr 18, 2010 at 00:35
by   jane
edited May 17, 2016 at 05:41
 
@Notalawyer

Need your kind urgent response to my dilemma, from my understanding reading others' posts, I do not need to bother on those debt collectors for debts that have yet to be issued legal notices or blacklisted with CTOS.

My dilemma is one of my credit card debt is with CIMB (formerly Southern Bank). CIMB is demanding me to settle only after 10 years and they blacklisted me in CTOS. I believe the call was from collection agency as it was made only NOW. Do I need to pay them since my salary is credited to CIMB? I'm afraid they will take the money from my savings account to settle the outstanding without my knowledge. Can CIMB make me a bankrupt now the the outstanding has reach RM31,000 even though the amount sued was RM2830 in year 2001? Can they make me a bankrupt only after 10 years after the first summon in year 2001?

Really need your help before I pay them anything or agree to any of their settlement which may be discussed. Thank you.
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answered on Apr 18, 2010 at 02:29
by   notalawyer
Dear Jane,

1. You should not have paid CIMB anything.  But anyhow not much harm done.
After Southern Bank got judgment against you from court in year 2001, they have only 6 years to accumulate interest.
Clearly RM 2830 cannot accumulate to more than RM 30k in 6 years.
After 6 years from judgment date has lapsed, the amount you owe CIMB by law is only RM 2830 exactly by law.
Since this amount is too small to make you a bankrupt, the bank's only hope is to get debt collectors to harass you since the law does not allow them any further options.
After 12 years from judgment date has lapsed, the amount you owe CIMB by law is zero, but this does not mean the debt collectors will stop harassing you.

Depending on the fine print written in the credit card terms and your saving accounts terms, the bank may withdraw money from your savings account to pay for credit card debt, notwithstanding Limitation Act.
But since they have not done that yet so far, it could be they do not have the rights.

To be safe, I would advise you to use another bank's savings account for salary purposes.
Employment Act states that the employee has the right the insist on the form of payment.
If you continue to use CIMB account, withdraw your salary as soon as it goes in.
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answered on Apr 18, 2010 at 03:00
by   jane
edited May 17, 2016 at 05:55
 
Thank you soooo much for clarify that..

but what about my other 2 credit cards debts which the collectors keep harassing for payment, threaten to sue me NOW instead of 12 years ago. As I have checked with CTOS those 2 banks haven't blacklisted me yet.

As for Southern Bank (now CIMB) should I just pay them RM2830 as you mentioned by law the amount they can demand from me? OR the full settlement they offered just to discharge my name from CTOS? The collector asked me to make initial payment of RM500 which I did pay. However the lady haven't call me back to discuss on the settlement as promised. I also have no idea what they are up to?

As you know, banks still refer to CTOS to check on applicant's credibility even though the record is already over 10 years old. I need to buy a new car and also a bigger house to stay however it is made difficult now that my name blacklisted in CTOS. What do you advise for me to do? I need to get my name cleared from CTOS & I have no idea how.

I'm really thankful for your advice. I've been walking in and out of banks to get personal loan to settle all these debts, now I know my rights, I don't need that personal loan anymore. I guess all these employees of collector agencies are just human beings who know nothing about law. They just call debtors demanding payments as been told by their agencies.

Hope my case and your advice can lighten those Malaysians who have the same dilemma. THANKS AGAIN and please advise me on how to discharge my name from CTOS, should I settle with CIMB or direct to Bank Negara Malaysia (BNM).
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answered on Jun 19, 2011 at 07:51
by   Angel
edited May 17, 2016 at 05:57
 
@Notalawyer

Not sure how this goes but I do have the same issue with Jane. Are you a lawyer or do you know any who can represent me to negotiate it with the banks? Its more than 10 years now. Thanks a lot.
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answered on Aug 23, 2011 at 00:17
by   Onlooker
Dear Angel,

In fact, you can call them up personally to negotiate with them to come to an agreed amount for settlement.
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answered on Aug 23, 2011 at 01:12
by   vkpc
Dear Angel,

Wait 2 more years until 12 years then you don't owe them anything more by law.
Take care.
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answered on Aug 26, 2011 at 18:17
by   emerald
edited May 17, 2016 at 06:15
 
@vkpc, notalawyer, Jane, Angel...

Do you guys mean that you guys were not sued bankrupt during the 1st 6 years despite owing to the bank? or did you all ever take any action to delay any legal actions form the bank?

I am curious to know as I am also facing credit card debt problem... and have been receiving calls that have been giving me nightmares nowadays.
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answered on Aug 27, 2011 at 23:11
by   Dun Worry
edited May 17, 2016 at 06:18
 
I have more than 5 credit cards owing huge amounts. I knew I was going to make myself a bankrupt, I quickly renew my passport and went overseas to work until now (I am still in overseas and back soon). Before they make you a bankrupt, do get your passport renew as soon as possible.  Even if you are declared a bankrupt, you still can travel via Singapore (by train of course - they don't scan your passport) from there take a flight out from Singapore to go to whatever country you need to visit, after your overseas trip or business trip you have to come back to Singapore and return by train again (don't take a flight out from Singapore as you will land at Kuala Lumpur International Airport (KLIA) where the immigration will scan your passport and your passport will be confiscated if you are declared as a bankrupt).  When you return from your overseas trip and taking a train back to Kuala Lumpur (KL) from Singapore, you will arrive at the Johore Immigration, don't line up where the scan machine is, you can get your passport stamp instead of going through the scanner -- from there you are safe and sound and you can go again should you need to travel overseas.

I have been doing this for quite a while now, I have checked with the Immigration Status, my name is blacklisted so far (touch wood) so good.  Probably this time, my passport will be confiscated as I will be travelling direct from New Zealand to KLIA (as my passport is expiring in May next year) so they can have my passport as I have earned some money rite now..  nothing to worry and be happy.
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answered on Aug 27, 2011 at 23:22
by   1818
Very good tip, Dun Worry. I'm sure many of us here appreciate that gem!
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answered on Oct 12, 2016 at 19:09
by   Justin Lee
edited Apr 26, 2017 at 06:54
 
Can I check something? I was reading the thread in the above forum and came across the following paragraph:

"1. You should not have paid CIMB anything.  But anyhow not much harm done. 
After Southern Bank got judgment against you from court in year 2001, they have only 6 years to accumulate interest. 
Clearly RM 2830 cannot accumulate to more than RM 30k in 6 years. 
After 6 years from judgment date has lapsed, the amount you owe CIMB by law is only RM 2830 exactly by law. 
Since this amount is too small to make you a bankrupt, the bank's only hope is to get debt collectors to harass you since the law does not allow them any further options. 
After 12 years from judgment date has lapsed, the amount you owe CIMB by law is zero, but this does not mean the debt collectors will stop harassing you" ....


I still owe 2 banks their credit card payment... for the pass 8 years and my credit limit is RM3k for each card my usage was barely 2k on both cards.but both the cards has racked up amount of over 20k Does this mean the bank can only collect interest for up to 6 years . and that the remaining amount stated in the letter of demand is actually not on record? please advice as i am finding for avenues to settle my debts but i cant seem to find anything that can really help me with solving my dilemma . Thank you 
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