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What is the maximum allowable penalty charges on credit card debt in Malaysia? Does credit card have debt ceiling?

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asked on Apr 6, 2016 at 20:29
by   helpmepls
edited on Apr 13, 2016 at 05:57
 
I would like to know what is he maximum debt allowed by Malaysian law, if I have a credit card that the credit limit is RM5k ? If I don't pay, will the debt go up to RM10k or more?

Appreciate a quick reply. Thank you for your time.
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4 Answers

answered on Apr 6, 2016 at 21:41
by   jeff005
edited Apr 7, 2016 at 00:15
by   jeff005
Personal Computations
At date of being made a Judgement Debtor in a court of Law, with an amount of RM7,500, the debt will rise to RM30K in just 72months (6 years).

30K is the threshold for Bankruptcy court filing.

Do take serious note.

1. 18% daily interests rates
2. Monthly 1 % overdue interests charges
3. Monthly services charges plus default charges
4. Annual services charges
5. Cost of sending Bill Collectors to recover the default loan. (legit) Can change every 6 months.
6. Legal costs.
7. If the address is not the same as with bank records, more misc charges to locate the defaulter.

With a RM5k, it will only take a few months(approx 8 months) to reach 7.5K. The bank will then file a court lawsuit to try to recover the debt.
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answered on Apr 6, 2016 at 22:06
by   helpmepls
edited Apr 13, 2016 at 05:59
by   helpmepls
Will I be made a bankrupt over this debt Jeff? Should I just pay them? I am saving money to pay my Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) loan instead which costs RM24k. They want me to pay lump sum.

What should I do? I am overseas now and I have applied for a temporary residence visa here for 1 year. I have a wife here in Europe.

I don't want to have my passport blacklisted as I need to renew it.
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answered on Apr 6, 2016 at 23:12
by   helpmepls
Dear @jeff005,
I would appreciate a reply to this question for me to plan my finances. Please help..
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answered on Apr 7, 2016 at 00:03
by   jeff005
edited Apr 13, 2016 at 06:04
 
@ helpmepls

Have replied you under "little prickle":
https://www.lawyerment.com/answers/questions/11360/currently-overseas-with-credit-card-and-ptptn-debts-what-will-happen

Your temporary residence (TR) is shaky.

Permanent residence (PR) is still far away.

Even with PR there could be requirements to travel back to Malaysia.

Nowadays from PR to Citizenship requires even more stringent checks as overseas nowadays do not welcome "outsiders". You have a wife that may work to your advantage. Be very nice to her and you would be secure.
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