Any sample letter to write to bank on settlement of debts (loan)?

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asked on Jan 5, 2011 at 19:10
edited on Mar 28, 2016 at 20:05
Hi there, I would like to seek advice or help from the member here.

I have called up my Official Assignee (OA) in Jabatan Insolvensi Malaysia (JIM KL) (as you guys know, is fxxking hard to get to the Person in Charge (PIC). Even general line also no body bother to answer).

I have to write in e-mail only the OA (2nd OA handle my case) called me up.

I am trying to get info on how to settle the loan debts (Owing RM40K), and I hope can get a discount as much as possible.

So I thought Official Assignee (OA) will be the right person to negotiate with the bank. But when I talked to her, she asked me go to approach the bank and negotiate with them. When the bank comes out with a figure and we mutually agree then only the bank will write in a letter to Jabatan Insolvensi Malaysia (JIM). Is this how it goes?

Anyone can help me with the letter to settle debts and of because the appeal letter later on to further mark down the debts.

I wonder if Public Finance Bhd is around since this loan was from them since 10 years ago.
Thanks and regards.
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answered on Jan 5, 2011 at 23:39

This is the process in order for me to get discharged and you have to do yourself (OA will never help us)

1) Call the bank and tell them your intention to get discharge. (Ask for final amount to settle). It is normal if they pass the line one to another department. (Don't give up until you get the correct person incharged)

2) They will provide you the letter of offer, which they stated the amount to settle.(you have to follow up with the closely if you want them to speed up the process. (Used very polite word)

3) If you not satisfied with thier offer, you can write letter to appeal to reduce the amount. (This is the letter that I'm send to them. (My lawyer draft this letter)(I get RM12K instead of RM15K)

Your Ref: 

Your name & address


Bank Address

Dear Sir/Madam,


I refer to the above matters.  Thank you for your letter dated ----------, in which you agreed to the full settlement figure of RM15,000.00 to discharge the debt.

Due to my current unfortunate circumstances and dire financial straits I am unable to make the proposed payment. The absolute limit of my capability of borrowings from my siblings and relatives is a sum of RM10,000.00.

That is the only sum I can afford. It is my intention to discharge this debt at the earliest possible opportunity, and therefore, I assure you of my integrity and commitment to pay you the said sum of RM10,000.00 (Ringgit Malaysia : Ten Thousand Only) within seven (7) days of receipt of your approval.
Your kind consideration and approval shall be much appreciated.
Thank you.

Yours faithfully,


4) After get the letter, go to JIM and pass the letter to OA and OA will give you the total amount to settle. (This is also you have to folow up with them)- The amount is inclusive JIM administration fee.

5) Then make payment and bring the receipt and document related to your lawyer.

Hope this is can guide you
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answered on Jan 5, 2011 at 23:56
edited Mar 28, 2016 at 20:16
Hi Pening,

I am sure your letter is very helpful to many forummers here.

I guess you are no longer 'pening' now, haha.


1. Does your RM12k include all the fees paid to JIM?

2. What about admin and legal fees JIM charges? Or was your FINAL TOTAL RM12k?

3. Just to clarify, did your bank accept your RM10k settlement or did they ask for more?

4. What is the total legal fee you have to pay your lawyer?
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answered on Jan 6, 2011 at 00:07
edited Mar 28, 2016 at 20:20

The bank offered me RM15K at first out of RM26K++. Then I appealed to get RM10K but the best they can offer me is RM12K.

The total amount I have paid to JIM for Full settlement provided by the Official Assignee (OA) is RM13252. This amount is a net amount (I have pay JIM every month for 9 months RM100 = RM900 already with them).

The stupid Maybank frozen my account and send to JIM RM370++.

So the actual amount that I paid to them is as follows:

1) Full settlement -  RM13252
2) Monthly payment -      900
3) MBB Freeze account -   370

Total is              14,522

My husband lawyer friend helped us to handle this case, so he give us free of service charge. We only paid for incidental expenses - stamping.. it was less than RM400.

Hope this is can help you all.
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answered on Jan 6, 2011 at 00:32
Thank you for answering my questions, Pening.

I am glad for you - now you are free to do many things, especially, visit other countries if you wish!
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answered on Jan 6, 2011 at 00:51
edited Mar 28, 2016 at 20:21
Thanks, yes hold it more than 7 years.
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answered on Jan 6, 2011 at 15:11
edited Mar 28, 2016 at 20:22
Hi pening,

I would like to know you call to the branch or the head office of the bank?

My loan is from EON Finance Bhd at Taman Midah Cheras. (Correction for the above statement that I put Public Finance Bhd)

Regards and thanks.
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answered on Jan 6, 2011 at 15:39
edited Mar 28, 2016 at 20:24
Hi pening,

Just called EON Bank Bhd (Credit Recovery Centre-Hire Purchase). They asked me to write in a letter to propose or inform how much I am willing to settle and if they think is reasonable then only they will get approval from the Head Office. Once approve then only I can pay at JIM.

Can i just amend your appeal letter and then send to the CRC-HP? Should be quite okay if i use back some sentences.

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answered on Jan 7, 2011 at 02:10
edited Mar 28, 2016 at 20:25

My bank is AmBank. Different bank they have their own way but you can amend my letter and give your proposal to them. You must give the amount that you are able to settle and that amount is not inclusive of admin charges of JIM. JIM will give you final amount to settle after you pass the letter of offer from bank to them. Good luck!
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answered on Jan 11, 2011 at 18:31
edited Mar 28, 2016 at 20:27
Hi Pening,

Just out of curiosity. Your debt is only RM 26k++? I thought debt must exceed RM30K then only you will bankrupt? I am kinda confused.

I have paid my monthly installment to JIM since year early 2007 until if not mistaken already paid RM8k....

When you received letter offer (after appeal) from bank, you accept the offer by writing in? or personally have to go to the bank there to get the letter and submit to JIM later on?
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answered on Jan 12, 2011 at 00:57
edited Mar 28, 2016 at 20:29
Hi blur,

Actually bankruptcy amount increased to RM30K in 2004 and before that only RM10K they can file you bankrupt. The bank lawyer submitted an application for bankruptcy to me in November 2003 but the hearing was only in April 2004. So my file already in court in 2003, that's why they can declare me as a bankrupt even though my debt only RM26K++.

I went to the bank to take the letter of offer and submit to JIM. JIM will calculate your monthly payment to them for your final payment.

Good Luck!
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