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Debt sold and limitation

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asked on Mar 19, 2021 at 17:15
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Will the time barred limitation of 6 years get reset just because the debt was sold or it is still 6 years from the default date?

As Aigon have been going around saying the debt limitation period get reset from the date of vesting order/ debt sold.

So is that true? Because so far i have not seen any clause to that effect
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answered on Mar 19, 2021 at 17:42
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edited Mar 19, 2021 at 17:47
by   Oldalantam
Vince Sum 

If that case all financial institution will set up an SPV company and after 6 years sell the old debt to their SPV and reset the clock . You think they will sell it off with cheap price to 3rd party ? 

When you buy a 10 years old car , can you still claim warranty from the car manufacturers if you found out the engine not smooth ? 

Search Vesting Order . All terms and condition stay when vest over to 3rd party . 
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answered on Mar 19, 2021 at 17:46
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Oldalantam...

That is what i thought too...but this aigon going around buying here n theree. Throwing good money for bad records...hmmm
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answered on Mar 21, 2021 at 16:54
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edited Mar 21, 2021 at 16:56
by   Oldalantam
Vince Sum ,

Let do a simple math here with AM bank 

AB sold 530,000 accounts of bad debt worth RM 540,000,000 to 3rd party with RM 230,000,00 . 

It means each account worth about RM 1xxx. If 3rd party manage to get 10% from total accounts ( 530,000 ) to pay up , it means 53, 000 account . Let's said each account collect back RM 10,000 . That mean thier collection of bad debt will be RM 530,000,000 . This is a multi million business . That why so many company tender to buy the bad debt from bank .

Nevertheless , all the bad debt sold basically in 3 categories : 

1) bad debt that already have payment to bank ( mean Debtor already negotiated with bank and started paying installment to bank ) . Once 3rd party bought , than the debtor have to continue to pay 3rd party as what the debtor negotiated with bank . Same amount , same months of repayment .

2) Those have taken legal action and have gotten JID but bank did not proceed further due  to many reason example too costly to proceed further for small amount . Once sold , 3rd party have the right to continue the legal process . Means the judgement still not expire yet , 3rd party will consider to proceed further , definitely all the cost they have to folk out first .
3) those accounts already pass limitation ( majority of the sales ) . Than 3rd party need to find a way to collect those old debt , example to get debtor to pay anything to reset the limitation clock .

So , you can see , they are not throwing  good money for bad money . Can you name another business which have better margin than the above business ?  
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answered on Mar 22, 2021 at 10:18
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@ Oldlantam

3) those accounts already pass limitation ( majority of the sales ) . Than 3rd party need to find a way to collect those old debt , example to get debtor to pay anything to reset the limitation clock .

from what i heard - not only payment will reset the clock - even acknowledgment  of the debts - in black and white will reset it...so need to be very careful

BTW you should be glad since you are out of this trouble and mess...just like how i have settle RHB

as for others bank , debt - i hope it will be low and reasonable . if lets say the debt is RM 4k and they demand 5k , i would say why not...but if they want 100k for 5k initial debt then no way, i rather try to use time limitation instead.


not to say ada hutang tak mau bayar but be reasonable , not charge those ah long type of interest la
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