What To Do When Debt Collection Agency Knocks On Your Door. What is in BNM Fair Debt Collection Practices?

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asked on Mar 4, 2021 at 09:10
edited on Mar 4, 2021 at 09:13
by   jeff005

BNM “Fair Debt Collection Practices”

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answered on Mar 4, 2021 at 09:22
edited Mar 4, 2021 at 10:07
by   jeff005

Further Reads on :- 

Fair Treatment of Financial Consumers  by Bank Negara Malaysia
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answered on Mar 4, 2021 at 10:11
edited Mar 4, 2021 at 10:15
by   jeff005
Notes :

Here’s a list of actions that debt collectors are not allowed to engage in when dealing with borrowers:

1.  Call debtors more than three times per week.

2.  Block access to their residence or trespass on private property.

3.  Intimidate, use abusive language or attempt to humiliate debtors.

4.  Contact neighbors, coworkers, friends, or family members of debtors to demand for payment.

5.  Provide misleading information to scare debt i.e. threaten to bankrupt them, send them to jail or file criminal action against debtors.

6.  Misrepresenting themselves or the documents they present to debtors.

Other notable excerpts :

It’s also possible that debt collectors have been sent to you in order to repay debt that you never owed. Maybe you were the victim of credit card fraud, or you were charged incorrectly somehow. In these cases, if the debt is in dispute, it’s important to make a police report and begin an investigation immediately. Do not start repaying the debt because the act of paying back legally means you accept the debt as yours, so be careful.
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answered on Mar 10, 2021 at 20:42
edited Mar 10, 2021 at 20:43
by   jeff005
Excerpts from the Internet :

A1)  Can debt collectors blacklist you? ... While it is prohibited under the National Credit Act to list a prescribed debt on your credit profile, you should also understand that it is against their practice for a collection agency to threaten you on “blacklisting” your credit profile simply to coerce you to pay. >10 Feb 2021


A2)  Unpaid credit card debt will drop off an individual's credit report after 7 years, meaning late payments associated with the unpaid debt will no longer affect the person's credit score. ... After that, a creditor can still sue, but the case will be thrown out if you indicate that the debt is time-barred. >8 May 2020


A3)  Debt collectors aren't allowed to harass you or your family members about outstanding debts. ... And under the Fair Debt Collection Practices Act (FDCPA), creditors aren't even supposed to talk to your relatives, friends or neighbors about your debts.


A4)  Typically, the only way to remove a collection account from your credit reports is by disputing it. But if the collection is legitimate, even if it's paid, it'll likely only be removed once the credit bureaus are required to do so by law. >30 Nov 2020


A5)  How much do collection agencies pay for debt?
Debt buyers often purchase these packages through a bidding process, paying on average four cents for every $1 of debt face value. 1 In other words, a debt buyer might pay $40 to purchase a delinquent account that has a balance owed of $1,000.17  > Feb 2021


A6)  What does a debt collector have to prove in court?
If the account has been sold to another creditor, then that creditor must prove that it has the right to sue to collect the debt. ... Often such proof will be a bill of sale, an “assignment”, or a receipt between the last creditor holding the debt and the entity suing you.

For more examples :

Read here :

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answered on Jan 27, 2022 at 20:50
Case updates can be found here :
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