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Defaulting Credit Card Payment for more than 10 years

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asked on Oct 26, 2016 at 20:02
by   TerriC
Firstly, thanks in advance for any answers my questions may receive.

I have been defaulting on my credit card debt for more than 1o years without my realisation as I had relocated a while back. My outstanding balance then was very minimal, less than RM1500 i believe. Before relocating I had written to the bank with my Credit card returned in half, as well as to inform them of my new address. I unfortunately had not kept any copies of this mail, nor had received any acknowledgement from the bank stating that my mail was received. 

Being forgetful, I thought nothing more of that after that. I have also since not applied for any loans whatsoever with any other banks or credit cards. 

I was recently contacted by someone in my old address informing me that there are bank letters for me. After going through them, i discovered that I've been defaulting my repayments for 10 years to date, with the outstanding amount at RM29,000+. The bank has turned to a collections agency to recover my debt, but is still charging me interest on a month to month basis, with the RM30k mark coming up next month.

My questions are:
- i checked my credit report through purchasing the PLUS report on Mycreditwatch (RAMCI) and no outstanding debt was recorded in my report. In fact, my credit score was rated at a 6 / Good. What does this mean?

- Can I still apply for loans at this point?

- I have no lawsuits summoned upon me either, and not declare bankrupt. Can the bank sue me for bankruptcy over this after 10 years of defaulting payments? I have not made any contact or payments to this bank since.

- If I am willing to make a full settlement, who do i negotiate settlement with? Collector or bank? 

- Can the bank still continue to charge me interests monthly despite my case being moved to a collection agency?

- With my principle amount owing being low in comparison to the interest I am charged (RM1K + vs RM29k+) how much negotiation is possible should I decide to do a full settlement with the bank/collection agency? 

- With no acknowledgement from the bank back 10 years ago on my mail stating a change of address, I'm assuming i have no grounds to dispute this?

- By repaying in full, would that show on my credit report that i have paid a debt that was defaulted for so long? And if yes, how long will it be on my credit report?

- should I object to the amount owed in any way? or be honest and acknowledge that the debt is mine?

- Are there any do's or don'ts at this point i should be weary about?

Really appreciate any answers to this. Thanks.
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1 Answers

answered on Oct 26, 2016 at 21:07
by   jeff005
If what u hv stated is accurate, it has exceeded the 6 years Limitation Act.

The bank or their agents cannot sue.
Even if they try to, can set aside the suit.
Read @Ayzek case.

1. Do not contact the bank or their agents.

2. There is no debt to admit to. Once you contact them, can consider admission to the debt. Do NOT MAKE EVEN RM 1 PAYMENT.
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