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No summons for 10 year old debt. What to do?

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asked on Oct 29, 2016 at 20:24
by   TerriC
edited on Oct 16, 2017 at 06:57
 
I'd just like to clarify after reading some of the other posts. 

My debt with the bank has been defaulted for more than 10 years. I receive bank statements still every month with interest increasing by the month. I also receive calls from collection agencies but I have not personally spoken to any of them. No summons have been issued out to me nor have I any records of indebtedness or bankruptcy in my credit report. 

What should I do? Can banks still issue a court summon  to me? The limitations does not apply in my case without a court summon, is that right? 

Am I legally still obligated to pay my debt in full to the bank? If no summons are issued, how long can the bank keep charging me interest? When does this stop?
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8 Answers

answered on Oct 29, 2016 at 21:39
by   kiki
edited Oct 16, 2017 at 06:57
 
I'd just like to clarify after reading some of the other posts.  
Some of your questions in your other thread dated 26 October has been clarified by Jeff005. 

What should I do? 
Do nothing.

Can banks still issue a court summon  to me?
Normally they won't but some nasty banks still try their luck. 
If they do summon you can always set it aside.

The limitations does not apply in my case without a court summon, is that right?  
The limitation Act does apply into your case. You have not been summon for more than 6 years and you did not conduct any act that may reset the clock. They  are time barred.  

Am I legally still obligated to pay my debt in full to the bank?
If the bank has legal right, surely they will not allow their  money to get away.

 how long can the bank keep charging me interest? When does this stop?
As long as it is not paid or settled  the bank will continue to charge as long they like. 

But it's just a number.. just like our age.
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answered on Oct 30, 2016 at 00:25
by   TerriC
Thank you Kiki for clarifying. Appreciate the help. 
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answered on Nov 1, 2016 at 17:55
by   TerriC
edited Oct 16, 2017 at 06:59
 
After reading up some more, I came across this information:

In any matters relating to any forms of contract, the limitation period for commencing legal action is generally 6 years from the date on which the cause of action accrued i.e. the date of the money is due for payment.

However, once you have obtained judgment against the debtor but the debtor still fails or refuses to pay up in accordance with the judgment, you may enforce the judgment within 12 years from the date of judgment (Leave of court may be required if more than 6 years have lapsed from the date of judgment)
In my case, I'm not sure if the creditor has issued a judgement against me for my debt. Does this mean that the 6-year time barred limit could possibly be extended to 12 years? Meaning if I had defaulted my credit card payment, and in that first 6 years I had received a judgement without my knowledge, that it could be further extended an additional 12 years?

Please clarify? Thanks in advance. 
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answered on Nov 1, 2016 at 23:37
by   kiki
In my case, I'm not sure if the creditor has issued a judgement against me for my debt.
So, you must must find it out if you have been adjudged a debtor by the court before. One of the way  is to check it with CTOS.

Does this mean that the 6-year time barred limit could possibly be extended to 12 years? 
Only if you have been adjudged a debtor ( JD or Judgement Debtor) in court.

Meaning if I had defaulted my credit card payment, and in that first 6 years I had received a judgement without my knowledge, that it could be further extended an additional 12 years? 
Yes, to 6yrs plus another 6 years (with court consent) from the date of judgement.

No summons have been issued out to me nor have I any records of indebtedness or bankruptcy in my credit report.
So, since you are quite sure of your status, i am sure you are safe. 

What should I do?  
So no worry, go celebrate with your family lorrr..
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answered on Sep 21, 2017 at 15:19
by   TerriC
edited Oct 16, 2017 at 07:01
 
Thank you Kiki.

With regards to my 10 year defaulted debt, I have recently received a letter of demand from a debt collector stating that they have been appointed from the creditor to collect my debt, which has now amounted to RM32,000 from a principle amount of RM3,000+ way back in 2008. 

I have not made any payments nor had any communications with any creditor or debt collector ever since, and I believe my debt has been sold to multiple debt collection agencies since then. I have also checked the Insolvency department & CTOS/CCRIS and there has been no records of this default or court summons or bankruptcy in my credit report. 

Do I respond to this latest letter of demand from the collection agency? As they have demanded a response within 14 days for me to "avoid possible legal proceedings to be carried out against me".

From 2008 to date, I have not had any type of loans or credit cards with any banks, and I am 100% commitment free, with no credit history in my credit report. I am still able to travel, open a savings/current account with banks, and am recorded as a shareholder/director in a company within my credit report. 

Yet my Credit card default from 2008 is still haunting me, with this new letter of demand from the collection agency, and I am still receiving statements from the bank on my outstanding amount accumulating interest every month from the creditor. 

If my account has already been barred in 2008, and debt sold to a debt collection agency (or numerous), why isn't there any records on this? 

I am afraid to approach any banks to apply for any credit cards or loans at this point because of fear that my actions may trigger a record again. But I also understand having no records or credit history in your reports may not be a good thing as well. Should I apply for a credit card just to reconfirm if I am in the clear?

Really appreciate some advice.
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answered on Sep 21, 2017 at 15:36
by   jeff005
edited Oct 16, 2017 at 07:03
 
                           LETTER  OF  DEMAND

I hereby issue a letter of demand to  TerriC

Demanding that you do not contact any bill collectors, be it in written form or recorded verbal discussion of the purported debt. It would reset the clock on the 6 Years Limitation Act.

Should I apply for a credit card just to reconfirm if I am in the clear?
Apply if you really need it and is a position with disposal income.
All these debts and bankruptcy issues scares the hell out of me.
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answered on Sep 21, 2017 at 18:19
by   vkpc
Do I respond to this latest letter of demand from the collection agency? As they have demanded a response within 14 days for me to "avoid possible legal proceedings to be carried out against me".

Is it Affin Bank?
You do not need to reply or respond.
 
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answered on Sep 22, 2017 at 06:03
by   TerriC
@jeff005 @vkpc

Thank you for your replies. Letter of demand, respond I shall not. 

This is PB. 

Appreciate the advise! 
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