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Aiqon Capital demanding payment for my CIMB credit card debt

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asked on Feb 18, 2021 at 10:30
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edited on Jun 1, 2021 at 11:24
 
I am a little confused here. I used to have 2 credit cards, one with Southern Bank and another with CIMB but that was way back and both were cancelled in 2002 due to default payments. At that time, the amount due was I believe RM4K each for both cards.

Over the years there is no legal case taken against me on the amount due. Occasionally there are some calls from debt collectors chasing for payment and that's about it. I don't think the bank actually took any legal action against me yet. 

Last week, there is this Aiqon Capital that called and informed me they are the new owner of the debts and I am owing RM92K to them for both cards and I should pay or face bankruptcy proceedings within a week or so.

I need the advice if I should just follow their demand or should I ignore their request since there are posting I read here that mentioned 6 years limitation or some that mentioned is extended to 15 years already. 

So was really hoping someone could help me with advice on what should I do next. 
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answered on Feb 18, 2021 at 11:08
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edited Jun 1, 2021 at 11:27
 
@Vince Sum

Over the years there is no legal case taken
Is the address registered with the banks reachable to you? If not, how do you know there has been no legal action taken by the banks?

I don't think
Never "think", now is the time to go to the nearest Court Kompleks, use your IC and check if there has been any lawsuit on you before. Check your current Bank Negara Malaysia CCRIS statement.

6 years (Limitation Act)
A creditor has a 6 years period to launch a debt recovery lawsuit upon date of default of the debt. Upon successful litigation, the defaulter becomes a Judgement Debtor, the creditor becomes a Judgement Creditor.

15 years (Limitation Act)
A Judgement Creditor has a 15 years limit to initiate Bankruptcy Proceedings against a Judgement Debtor and other methods of debt recovery actions. Selling of bad debts to Bad Debts Buyers (BDBs) is one of the action. Other actions includes Writ of Seizure and Sale (WSS), Garnishee Order.. etc.. etc..

(Caveat: The above comment/s is written by a Q&A registered User. It represents a personal point of view not be regarded as legal advice)
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answered on Feb 18, 2021 at 11:18
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edited Jun 1, 2021 at 20:42
 
@jeff005

Is the address registered with the banks reachable to you? If not, how do you know there has been no legal action taken by the banks?

Yes, I have been staying there at the same place registered with the banks - no legal notice, no appearance or etc, not even letter of demand from the lawyers or etc only monthly statements.

There is only one notice, saman pemula by RHB - RM 11K which was filed with High court last year - which was subsequently withdrawn by RHB as I have settled the amount due in full.

Never "think", now is the time to go to the nearest Court Kompleks, use your IC and check if there has been any lawsuit on you before. Check your current Bank Negara Malaysia CCRIS statement.

Okay, will do so. The last time I check it was only showing default in payment but no legal case or etc.

So if its confirm there is no legal case yet - then should I ignore them now or am I still within the period where they can sue for bankruptcy?
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answered on Feb 18, 2021 at 11:26
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edited Jun 1, 2021 at 20:59
 
@jeff005

A creditor have a 6 years period to launch a debt recovery lawsuit upon date of default of the debt. Upon successful litigation, the defaulter becomes a Judgement Debtor, the creditor become a Judgement Creditor.

A Judgement Creditor have a 15 years Limit to initiate Bankruptcy Proceedings against a Judgement Debtor and other methods of debt recovery actions. Selling of bad debts to Bad Debts Buyers (BDBs) is one of the action. Other actions includes Writ of Seizure and Sale (WSS), Garnishee Order.. etc.. etc..

Based on your comment above, I would need to confirm my understanding meaning in total the creditors would have 21 years to take action. Meaning to sue within 6 years to make one a judgement debtors and then within 15 years to make a person a bankrupt?
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answered on Feb 18, 2021 at 11:43
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edited Jun 1, 2021 at 21:12
 
@Vince Sum

saman pemula by RHB - RM 11K which was filed with High court last year
Inaccurate statement. Check the originating summons again to see which "Court" you have attended or have to attend. High Court do not take cases of 11K, too cheap for expensive High Court Judges.

the last time I check it was only showing default in payment but no legal case or etc.
The 12 months CCRIS reflects the current defaults of your banking activities. It will not show defaults of 18 years ago (unless the banks update it of any legal action). If you do not know how to interpret CCRIS (current one), post it here for people to decipher it.

How to deal with Bad Debts Buyers (BDBs)? Read this thread properly:
https://www.lawyerment.com/answers/questions/13840/what-is-a-vesting-order-obtained-by-aigon-can-i-make-a-negotiated-settlement

then should I ignore them now or am I still within the period where they can sue for bankruptcy?
1. Ignore them now until you receive legal letter from them, then revert here.
2. Discuss about the period only with proof from the Courts. (Read here: https://www.lawyerment.com/answers/questions/13892/how-to-know-you-are-judgement-debtor).

Based on your comment above, would need to confirm my understanding meaning in total the creditors would have 21 years to take action.
Inaccurate..  The first action must be taken within the first 6 years otherwise the any future lawsuits will be useless. Bankruptcy is the 2nd action after the 1st action. Normally the bank would not take risk to "max" the periods of limitation.
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answered on Feb 18, 2021 at 11:51
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edited Jun 1, 2021 at 21:14
 
@jeff005

Inaccurate statement. Check the originating summons again to see which "Court" you have attended or have to attend. High Court does not take cases of RM11K, too cheap for expensive High Court Judges.

Okay, I will check back - but in anyway is already close case by RHB since already paid in full and got a release letter plus the lawyer of RHB have also forwarded me the notice of case withdrawal filed with the Mahkamah.
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answered on Feb 18, 2021 at 11:59
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edited Jun 2, 2021 at 11:33
 
but in anyway is already close case by RHB

People here are too "presumptuous".
Any lawsuit in court is a digital trail which Banks and Bad Debts Buyers always rely on.
The fact they "may have" managed to contact @VinceSum is because of the digital trace of him "settling" another lawsuit. Which means this defaulter is scared of lawsuits and would settle other lawsuits. They will hunt down hard like a pack of shadowy wolves.. !!
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answered on Feb 18, 2021 at 13:49
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edited Jun 2, 2021 at 11:35
 
@jeff005

Inaccurate..  The first action must be taken within the first 6 years otherwise the any future lawsuits will be useless. Bankruptcy is the 2nd action after the 1st action. Normally the bank would not take risk to "max" the periods of limitation.

Which means if the bank does start a case within 6 years to make us a judgement debtors. Then they will have another 15 years to make us a bankrupt? IF that is the case then basically what we can say is we need to wait 21 years in order to truly say we are already beyond the limitation period and no action will succeed?
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answered on Feb 18, 2021 at 19:56
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edited Jun 2, 2021 at 16:08
 
@Vince Sum,

Aiqon has bought the bad debts of a few banks. Beside the 3 banks, any other bank you have own?

By the way, due to the Covid-19 pandemic, the bankruptcy law has been amended, bankruptcy threshold is now RM100k (after 31 August 2021)
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answered on Feb 18, 2021 at 22:32
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edited Jun 2, 2021 at 16:15
 
@Vince Sum,

then basically what we can say is we need to wait 21 years
This is just a theoretical period.
Upon awarding a judgement debt, the creditor has only 6 years to collect interests as specified in the Perintah Mahkamah. For some cases, it may not reach the bankruptcy threshold after 6 years of additional interests. So it is pointless to hold on to the debt if the debtor cannot be found which means other modes of debt recovery is not feasible. Nowadays it is preferred to "sell" away the bad debt for tax relief via vesting order to Bad Debt Buyers.

Even after the 21 years, an unsettled debt is forever, there is no such thingy in Malaysia, such as "expired"/written off. The creditor can always/still call you periodically on "how to settle". No laws is broken by their calls. The Financial Blacklisting carries on till the debt is settled via full payment or negotiated amount. But any lawsuit is futile after the 21 years period.. 

On the following Quote:

"By the way, due to the Covid-19 pandemic, the bankruptcy law has been amended, bankruptcy threshold is now RM100k (after 31 August 2021)."

This is just my personal interpretation:

This RM100K is akin to a Moratorium valid for a period of two years after which can be reverted back to RM50K. Unless there are changes, the limitation period can be reset back/forward (technically) by 2 years too.
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answered on Feb 19, 2021 at 22:19
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edited Jun 2, 2021 at 16:17
 
@jeff005,

I just went to KL Mahkamah to check. The clerk informed me based on checking the Mahkamah Rendah system . There is only the RHB case filed in 2018 and withdrawn in 2018 as well. There are no record of other case against me. 

So does that mean if I defaulted in 2002. And they didn't file the case to make me a judgement debtor. Technically they are time barred today?
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