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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 Oct 13, 2016 at 00:13
by   kiki
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.

If you have not paid a single sen since 8 years ago then that debt becomes lupus under the LImItation Act.

Does this mean the bank can only collect interest for up to 6 years .
Yes, ONLY  If you have got a judgement from the court before.

and that the remaining amount stated in the letter of demand is actually not on record? 
It is in record . Their Record.

You received letter of demand from lawyer/bank?
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answered on Oct 13, 2016 at 03:26
by   vkpc
and that the remaining amount stated in the letter of demand is actually not on record?
The amount demanded cannot be sustained if they sue and you contest the lawsuit in court.
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answered on Oct 13, 2016 at 17:47
by   Justin Lee
edited Apr 26, 2017 at 06:58
 
Thank you so much for the prompt reply to my questions. I really appreciate your attentiveness to my situation, well I can't really recall on letter of demand as well as judgement from the courts on the matter but is there a way I could know if had received this? I'm currently receiving the statements from the bank asking for the said sum and collection agencies requesting for payment to be made even coming to my home. What do you advice me to do? 

May I also understand how does bankruptcy play out in my situation as mention? and if the interest crosses RM30,000 will I be subjected to bankruptcy base on my situation? How do I handle this matter? 

I'm so sorry to trouble you. I'm really a novice when it comes to this sort of matter.
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answered on Oct 13, 2016 at 19:12
by   kiki
edited Apr 26, 2017 at 06:58
 
well I can't really recall on letter of demand as well as judgement from the courts on the matter
You can check it out with CTOS.

I'm currently receiving the statements from the bank asking for the said sum and collection agencies requesting for payment to be made even coming to my home. What do you advice me to do? 
Do nothing. Wait for official lawyer/bank letter or summon to go to court if there is any.

May I also understand how does bankruptcy play out in my situation as mention? and if the interest crosses RM30,000 will I be subjected to bankruptcy base on my situation?
They will have to  summon you to court and make you as a judgement debtor first before they can make you a bankrupt.

How do i handle this matter?
Browse all the cases posted in this forum under the bankruptcy law heading, you will find a case that is similar to your case. Read it, as it can give you ideas of what you need to do...
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answered on Oct 14, 2016 at 07:44
by   indebtcluelessness
edited Apr 26, 2017 at 06:59
 
@notalawyer

Appreciate your advice.

I have a debt with Public Bank which is now 12 years old. My initial amount was only RM1500, but to date Public bank still sends me my credit card bills every month with interests on that amount still snowballing each month (now at RM50k), and my case was apparently handed over to a collections agency some 8 years ago.

I have not applied for any credit cards or loans since that first credit card with Public bank and my credit report with RAM has no records of debt. There's no record of bankruptcy as well. I have, as well, not had any form of communication or acknowledgement of my debt with both collection agency and creditor.

My questions are:
1. Can the bank still continue to charge me interest for the debt that's gone to a collection agency? 
2. Can I be made a bankrupt even after 12 years of no summons or actions by the creditor? 
3. As I had relocated from my old place and thus not received any communication from the bank, could it be possible that I was summoned to court without my knowledge? And that it has already been removed from my records due to time?
4. Should I be paying the bank my principle amount only or renegotiate a settlement or do nothing?

Your advice would be extremely helpful. Thanks in advance.
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answered on Oct 14, 2016 at 19:41
by   notalawyer
1. Can the bank still continue to charge me interest for the debt that's gone to a collection agency? 
Interest charged is just a number in the computer. 
Nobody asked the computer to stop charging interest.

2. Can I be made a bankrupt even after 12 years of no summons or actions by the creditor? 

Although rare, some crazy banks have done it.

3. As I had relocated from my old place and thus not received any communication from the bank, could it be possible that I was summoned to court without my knowledge?
Why not?

And that it has already been removed from my records due to time?

Your question is not clear.

4. Should I be paying the bank my principle amount only or renegotiate a settlement or do nothing?
If you pay something, it is deemed that you still acknowledge the debt and then you can be made a bankrupt.
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answered on Oct 19, 2016 at 19:03
by   Justin Lee
edited Apr 26, 2017 at 07:00
 
I have requested my CTOS report online, but it does not state any credit card outstanding amount. It has very minimal information, is the info accurate? It only says I'm a director of a company and that I have a trade reference with a mobile operator owing them RM600 plus... but that is all the information it has.... how come it does not state any other info? Thanking you in advance for your reply... 
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answered on Oct 19, 2016 at 22:28
by   kiki
I have requested my CTOS report online, but it does not state any credit card outstanding amount , it has very minimal information, is the info Accurate?
This means you have not got any Judgement before. And most likely  the credit card debt has also lupus due to the limitation act.
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answered on Oct 20, 2016 at 16:41
by   Justin Lee
edited Apr 26, 2017 at 07:01
 
Oh okay. So may I know what do you suggest I do next? Would it interfere with my progress in life? or travels abroad?.... What would you recommend me to do for now?
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answered on Oct 21, 2016 at 02:38
by   kiki
edited Apr 26, 2017 at 07:03
 
So may I know what do you suggest I do next?
Do nothing ..

would it interfere with my progress in life?
The debt will be transferred from one collection agency to another as time goes by..
Then one of them will try their luck on you... sent letter, bank statements, SMS.. etc .., but they actually can't do anything.

or travels abroad?
No worry ... because you are not a bankrupt or a criminal.

what would you recommend me to do for now?
Celebrate, for the newfound knowledge.. try to help others.
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