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Credit Card's Interest: Limitation Act 1953

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asked on Jan 14, 2020 at 12:59
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edited on May 1, 2020 at 17:48
 
I got few questions and hope that somebody can assist me. Basically I have 2 credit cards debt where the last payment was on 2013 and yet the debt collector is still asking me to arrange for payment. The question is:

1. After 6 years, can the bank still charge interest on my outstanding debt? Because, Limitation Act provides that "no arrears of interest in respect of any judgment debt shall be recovered after the expiration of six years from the date on which the interest became due." I got confused because one of my credit card outstanding didn't  increased since it has been blocked. While the other one keep on increasing from -+ RM2k to RM6k now. 

2. Should I update my current correspondence address to the bank or debt collector as I am afraid the bank or lawyer will send me a summon/bankruptcy notice to the old address once the outstanding reach RM50k and I will not receive it due to the address.

Hope I can get a clear explanation here. Thanks in advance. 
By the way, I plan to settle all these debts when I am financially stable.

Thanks again!
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1 Answers

answered on Jan 14, 2020 at 16:24
by  
edited May 1, 2020 at 17:49
 
1. After 6 years, can the bank still charge interest on my outstanding debt?
Why shouldn't they? It is still a debt to them and not a judgemental one yet.

Limitation Act provides that "no arrears of interest in respect of any judgment debt shall be recovered after the expiration of six years from the date on which the interest became due."
Can you cite the specific section & number in the act where this statement is deŕived from.

2. Should I update my current correspondence address to the bank or debt collector as I am afraid the bank or lawyer will send me a summon/bankruptcy notice to the old address once the outstanding reaches RM50k and I will not receive it due to the address.
Since the debt collector has no problem reaching it to you then you might as well update the bank (minus the debt collector) with the correct address for future legal purpose.
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