Please come in and give me some legal advise.

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asked on Sep 3, 2012 at 10:36
by   sleepless
I hope some kind lawyers will spend some time answering my question.

I like to know whether have anyone SUE the bank for irresponsible / reckless lending.
Cos I read that one of the main criteria when bank lends money to us, they must check out our financial standing and we must have the "ability to pay"/ credit worthiness rather than collateral and etc.

I am facing bankruptcy soon i guess for my huge debts to several banks. all of these "soft loans" comes through offers from the banks through phone calls. Never once did I walk into a bank seeking loan. Initially I was a bit hesitant to take it as I fear I could not pay off. But eventually i end up taking them as I was hoping to strike something and also to cover current installments. I went bust after losing most of the money thru Bursa. I took cash advances from my cards as well when that happened, as the cards were empty with no outstanding. I was silly to try to buy time paying up my arrears by doing that.

Within 2 years, my debts has escalated to more than half a million!

So here i am, sitting in the dark, onto the 5th month of default. and i am really stressed up over this matter and cannot sleep most of the nights, while during the day harrased by all those debt collectors.

now anger has taken over my fear.

2 years ago, i was a normal salaried person of $8,000. clean credit cards, with a small personal loan of $40,000. Being single with not much commitment,i like to spend my money more than saving it, thus not much savings either.

Then came the phone calls offering loans from initially 30k and slowly increase to 100k. another bank came along and offered $150,000 lump sum without any collateral! another bank gave 72k. and the rest of the story, well i have written it out at the beginning.

funny thing is, in the midst of that, i applied for a 50k loan to buy Satria. I was rejected as the officer said that after their checking, i shud be in deficit so therefore, i cannot afford to buy the car!

back to the question - why did the banks insist on giving me all those easy loans and sending platinum credit cards to me?
did they not do any checks on me before INSISTING dumping all that money to me?
what was my debt service ratio when they did a rating for me? if there was 1 at that time, certainly i would not be able to take so many subsequent loans.
did they check my credit worthiness and my ability to pay?
I cancelled Citibank credit card 5-6 years ago cos i did not like them and the limit at that time was about 20-30k. one year ago, after calling me again and again to accept their credit card, they mailed to me a 100k limit card just like that.

I like to sue the banks for their reckless lendings, negligence on their checkings or maybe ZERO checking on my financial state and ability to pay. Unethical Soliciting of sales/business and excessive/obsessive  lendings that leads the lender with the INABILITY to pay. then follow by endless stress and trauma by sending their debt collectors to your door. ( i have offered in letters to pay 1% of my debts each month and they have all rejected it)

Can i take them up in court?
My friend said that so far, nobody has

Please answer me.

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answered on Sep 3, 2012 at 10:39
by   sleepless
the smiley at the end should be  and not
sorry for the extra post as i do not know how to edit my post.
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answered on Sep 4, 2012 at 01:30
by   Zzzz
Interesting notion - suing the bank. Can't wait to find out the details and outcome.

FYI, judges in M'sia are super pro-banks. Good luck, you will need it.
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answered on Sep 4, 2012 at 06:45
by   sleepless
yea, everybody seems to think this is a silly idea...

that;s y i need feedbacks and advises from the "angels" here and see whether it can be done or not, or maybe just end my silliness and sit and wait for bankruptcy.
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answered on Sep 4, 2012 at 13:44
by   notalawyer
When the bank sues, you can try use this as a defence.
Say that the bank were negligent when qualifiying you for the loan.
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answered on Sep 5, 2012 at 04:11
by   debtor
Yes its time the people come together and fight the banks for their negligent and irresposible way of increasing lending so as to achieve their sales targets and ultimately profit.

BNM should also take the blame for not curbing and controlling the way banks are giving out unsecured loans (including credit cards) at high interest rates at that time. Now they have controlled the credit card issuance.

But the borrowers are ultimately responsible to settle the loans and the way they spend. While the NPL is low, the profit margin for these unsecured loans is very high. High risk the banks are taking. Not following good lending principles and without good credit analysis. I think they base their approval on good payment records.

The NPL borrowers will get the headache if cannot pay, legal fees, interest charges, late payment charges, collectors harassment, legal actions etc.

Well those lawyers also make money in handling these cases.
By the way, how old are you? What type of profession  are you in? Are you ready for these banks to sue you bankruptcy?Do you have assets ?If you cannot pay due to financial reasons, you have no choice. Look at Greece a bankrupt nation.Go for AKPK help, maybe they can find a way out but you have to pay monthly.

Consumer associations, politicians , BNM  should help in controlling these banks of their reckless way of lending. Anyway, its better than borrowing from Ah Long.
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answered on Sep 5, 2012 at 04:40
by   sleepless
TQ notalawyer and debtor for your responses.

I am cruising into my forties very soon, as far as age is concern.
To me, there is not much alternative except to face bankruptcy.
AKPK will not be of much help to me. Yes, they consolidate all your debts and stretch your debts over a 10 year repayment period. BUT they also do charge you with an interest rate of 6%-10% p.a.
An outstanding of $600,000 will come to almost $36k to $60k p.a.
Tough right to go to AKPK for help!

It is more to financial reasons that i am unable to meet with the monthly instalments.
I do want to make good of the monies that I have borrowed but none of the banks are willing to come to a good payment scheme. There is no give and take situation but only win-win situation with them.
Example - UOB offers TERM LOAN at 18% p.a. with a low monthly payment and long repayment period. They ask you to pay 2% of your outstanding balance every month. The 2% covers the 1.5% monthly interest and balance of 0.5% is the payment to the principal sum! lol. might as well I die faster (with bankruptcy) than a long and torturous death ( with term loan)

notalawyer, i need to ask you, to your knowledge, have anyone ever sue the bank on the grounds that I have stated earlier?

Thanks all.
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answered on Sep 5, 2012 at 21:22
by   guarantor
My dear frd,the banking system ####s,so prepare for plan B. There are ways to survive eventhough we are bankrupt. Think outside the box.You can coz Malaysia is a country where despite being bankrupt you can still do well though they make you bankrupt easily.
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answered on Sep 6, 2012 at 06:58
by   sleepless
my dear guarantor, thank u for ur words of encouragement!
but currently i am like holding on to a branch while stuck in this quicksand. so my brain is a bit jammed up now!

show me how to think outside the box!
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answered on Sep 6, 2012 at 11:20
by   notalawyer
Why waste money suing the banks when your chances are 1% ?
Prepare to defend yourself by reading William Chan's book. ( from MPH )
Who knows, you might not become a bankrupt.
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answered on Sep 6, 2012 at 16:18
by   guarantor
Lets first face reality coz the banking system was design as such. Then prepare mentally that life has to go on. Minimize to the outside world of yr situation and get proxies for whatever you want to do. Cash transation true yr proxy must not be too glaring(you hv to protect yr proxy). How you want to keep yr cash,that i live it to you. Remember that when we are cornered,our brain works wonderful provided we must think positively. You will be surprise that you become a better person and more confident in life. When you hv the means to pay back then you decide yr next course of action. You are not alone friend,remember.
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