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Is it possible for banks to lodge a court case against you without informing you?

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asked on Feb 18, 2021 at 17:22
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edited on Apr 2, 2022 at 03:51
 
Just wondering if you have been staying in the same address for over 30 years. Never shifted even once, is it possible for the banks that you have defaulted payment on to file the case against you and make you a judgement debtors without your knowledge. I mean without their lawyers ever sending letter of demand, sending you any information on the court hearing date or etc.

Is those notice must be sent via registered mail or they can do file with the Mahkamah without even informing you at the first place?
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7 Answers

answered on Feb 19, 2021 at 12:19
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edited Feb 19, 2021 at 13:33
by   jeff005
@ Vince Sum

Is it possible for banks to lodge case against you?
Answering to the main topic content above of your Query above.

Yes, it is by laws that anyone can start a lawsuit on anybody with valid reasons.

There will be a discussion on the procedures of which, in this case, the bank has to follow under this thread :

https://www.lawyerment.com/answers/questions/13934/what-are-the-procedures-for-a-creditor-to-file-a-lawsuit-against-a-debtor-for

The bank have first to issue a demand letter and then a termination letter for your loan. It will be send to you by ordinary mail or registered mail to the correspondence address and/or home address.

If there is no response from you after 7 days (as stated in the demand letter), they would file a debt recovery lawsuit in Court. This originating summons  will be send to both registered addresses with the bank via registered mail.

The First hearing, often known as the case management hearing, if the debtor did not turn up, normally the bank lawyer will ask for JID (Judgement In Default). If the lawyer can show proof of sending letters, a JID can be awarded in the case.

This is a very serious issue for not receiving the registered letter. It has been taught by many people /senior forumers (too) in this forum NOT TO  receive registered letters from the Bank Lawyers if there is a litigation in the air. Many excuses were given : "Not living here anymore" ; "no such person here"; "gone overseas to work"; or simply not to answer the doorbell. With proof of avoiding service of summons, the PKP or Judge would award a JID for sure.

For this above case about subsequent "IFs", only the bank and the respondent in this lawsuit will know what has actually happened and whether there has been an actual service of summons carried out. Readers are advised to keep an open mind as many half truths can /may appear by either party.
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answered on Feb 19, 2021 at 22:02
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edited Apr 2, 2022 at 03:58
 
Hi Vince Sum,

1. First, the creditor must send the debtor a letter of demand for payment to be made within stipulated time;

2. If the debtor fails to make payment within the stipulated time, then the creditor will file a writ.

3. The service of the of the writ to the debtor must be proved by the creditor before the proceeding can be commenced.

Question: if you do not receive the writ, can the creditor commence proceeding against you???

Answer:

1. Yes

2. because the creditor can manipulate the service of the writ and then fie an Afidavit Penyampaian ( normally file by the process server / dispatch man ), affirming that the writ has been served on the debtor.

3. On the hearing date, the creditor will show the court the afidavit penyampaian as proof that the writ has been served.

4. Court will then make a judgement in default against the debtor.

The above is just my opinion, not legal advice.
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answered on Feb 19, 2021 at 22:08
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@Harapan Besar

Can we overturn the Judgement in default if we tell the court we didnt turn up because the writ was never served in the first place?
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answered on Feb 19, 2021 at 22:17
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edited Apr 2, 2022 at 03:55
 
Hi Vince Sum,

The debtor can apply to the court to set aside the judgement in default.

You need to prove by affidavit that the information stated in the Afidavit Penyampaian is not true at all.
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answered on Feb 19, 2021 at 22:29
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@Harapan Besar

Thanks for reply. By the way is there any time frame for us to apply to set aside since we might not even aware such event have happen

The bank can get the judgement. Keep it with them...then when they have accumulated enough to make us a bankrupt they file the bankrupty proceeding.
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answered on Feb 19, 2021 at 22:38
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edited Apr 2, 2022 at 03:55
 
Hi Vince Sum,

1. Yes, there is a time frame, but I do not remember exactly the time allowed.

2. Since it is a judgement in default, if you go to make a file search to extract your file, most likely, you will discover that most of the material info stated is incorrect.
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answered on Feb 19, 2021 at 22:44
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edited Apr 2, 2022 at 03:56
 
Hi Vince Sum,
   
Your question:

"The bank can get the judgement. Keep it with them...then when they have accumulated enough to make us a bankrupt they file the bankruptcy proceeding."

1. The bank can manipulate the service to prove that the judgement has been served on the debtor.

2. Normally, the creditor will wait till the amount of debt becomes big.
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