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Credit card debt and repossession of house

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asked on Apr 12, 2016 at 20:47
by   Princess
I am a supplementary CC holder, and currently I have a CC debt (approx. RM14K) with Maybank. I pay on monthly basis but I don't meet the min payment. (Been out of job for a year). Earlier this year, Maybank froze my account. I've tried negotiating with them for a lower min payment but it has been rejected. I've tried begging them to unfreeze my account but it has been rejected. In short, everything is a big NO from Maybank. 

Maybank Card Remedial centre has been calling me once every 2 days, asking me to pay up and I have been explaining my situation to them every time. They have been spamming my phone with at least 4 sms/day asking me to contact the officer in charge. 

Anyway, now they keep calling my mother (she is the principal) to chase for payments and they have been threatening to repossess my mother's house. 

My question is, does Maybank have the right to repossess my mother's house? As far as I know, the house loan has been fully paid. I don't recall anyone putting an asset (e.g. house) as collateral for credit card.  

Please advise. 
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6 Answers

answered on Apr 12, 2016 at 21:34
by   jeff005
MBB is correct to chase your mother as she is the principal card holder.
Chasing you is just part of their job and is normal and accepted legally.

But threatening to repossess your mother's house is not right.
If you have evidence of recordings of their messages you can make reports to BNM.
If your mother do not pay your share, they can file a lawsuit in court.
But make sure it is MBB or their Agents. They could be Bill Collectors.

Credit Cards Debts are unsecured loans, no collateral required.
But if the amount is sizable and is over 30K, they can initiate even a bankruptcy proceedings against you upon default. Of course, since your mother is the principal card holder and is still having an active  account, she would be the prime target. Not only house, garnishment of any bank accounts, cars, investments accs. "Repossess" is wrongly used in this context. Maybe stupid bill collectors language.

Your debt at 14k now is not big.
Do try to settle by installments.
Go get a gainful job and enroll for AKPK MDP.
In another 3 1/2 years you would reach the bankruptcy threshold value of 30K.

How old are you to be in such "high" debt?
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answered on Apr 13, 2016 at 05:37
by   Princess
I wonder, which part of my message that they don't understand - it's not that I don't want to pay or didn't pay at all. I just can't afford to pay more than the min payment for the time being. I feel like a broken old record when I explain my situation to them. Despite the fact that I told them I'm jobless, they asked me to apply for AKPK. I'd love to do that but how am I to apply when I am jobless?

My debt at RM14K, does that mean they can go after my mother now (e.g. repossess her house, freeze her accounts etc)? Could you explain more, please? 

The RM14K came from 3 cards - 2 old cards at RM2K each, the other RM9k+. I didn't use it to shop, if that's what you're thinking. I used it to pay bills, petrol and car repair work. The job loss came at the time when I was about to collect my commission for jobs secured during my tenure with the company. The commission would have been able to clear the total outstanding amount.
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answered on Apr 13, 2016 at 06:52
by   jeff005
edited Apr 13, 2016 at 06:54
by   jeff005
Dear Princess,

It is not that the bank do not understand you.
It is you who do not understand the banking systems.

Go to the the Bankruptcy and Insolvency section of this forum and read backwards for the past 8 months and you will then understand what is Debts Litigation in a Court of Law.

You will then understand why they will definitely go for the principal card holder (the Queen)

Please take note that I was never at any moment and at point of time "thinking" you were spending on "shopping". NOMB. We, forumers, do not speculate on how debts are incurred and accrued.
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answered on Apr 13, 2016 at 15:02
by   vkpc
My debt at RM14K, does that mean they can go after my mother now (e.g. repossess her house, freeze her accounts etc)? Could you explain more, please? 

a. Freeze her accounts. 

No, it will not happen unless it is same bank.

Tell your mum not to listen to debt collector lies.

Just change phone numbers or hang up on them.

b. Repossess her house

Why should the bank spend RM 30k on lawyers to reposses the house when they can

spend RM 10k to take things in the house instead? ( WSS ) to cover the 14k debt?

However, banks in Malaysia very extremely rarely do WSS on private houses because it is bad publicity for them.

So try to relax.
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answered on Apr 13, 2016 at 20:05
by   Princess
@jeff005 - It is true that I don't understand banking systems. That aside, I also don't understand why my friend who owes several banks at the same time, total amounting to almost RM300K, but those banks did not freeze his bank accounts (like what Maybank did to mine). There's nothing about repossession of his house. Is there a difference between being a principal card holder and supplementary card holder?

@vkpc - Maybank Card Remedial Centre belongs to Maybank, right? The staff told me that they instructed Maybank to freeze my account and it will remain until I have paid up everything. Also, the staff told me that they won't freeze my mom's account because it is not her who owes the bank. 

I have no knowledge of WSS and such. Still backtracking and reading at the other category. I'm just baffled that Maybank threatened my mom to repossess her house for my RM14K debt. My friend owes several banks amounting to almost RM300K but no such crap as the threat to repossess his house or other assets, no WSS or even freezing his accounts. My friend even told me that he only makes small payment to them each month, all not meeting the min payment. 

My question is, is there a difference in terms of threats by banks between principal card holder and supplementary card holder?
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answered on Apr 13, 2016 at 20:22
by   Princess
I found about WSS here https://www.lawyerment.com/answers/questions/8652/received-sms-text-message-threatening-wss-over-hire-purchase-debt

My mom is the principal card holder and I'm the supplementary card holder. I'm staying at my parents' home. In this case, how does WSS work? 

To be honest I have no actual data as to how many Writ of Seizure and Sale (WSS) banks execute but I do know that there are certain banks who will do it. 

WSS is certainly a form of legal action that is available to banks to recover as much as possible but there are many limitations as to what they can take. They will also need to have obtained judgment first before WSS. Therefore, providing that you are receiving your normal mail properly, it is unlikely that banks can just turn up and served WSS without some form of prior warning. 

WSS is also imminently difficult in certain cases as the debtor maybe living with the parents and the house belongs to the parents. This kind of information is usually in the banks' records because they asked such questions on most credit applications. Therefore, a bank may not choose WSS if it is totally hopeless for them. If they apply for WSS and served it on your parents property, they will end up with a major lawsuit. Proving ownership of the home is really easy through the quit rent receipts and it is very hard for them to prove what items in the house actually belongs to who. 

But the difficulty for a debtor is when he/she owns the property or had a lease/rental under his/her name. More difficult to convince that the items in the house do not belong to you unless the rental is fully furnished! 

Unless you own a big house with expensive stuff not essential to your daily living, WSS is not something you really need to worry about! 
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