10 Jul - 2 min read
The Federation of Malaysian Consumers Associations (FOMCA) has advised borrowers to liaise with their respective banks for negotiations as soon as possible if they are unable to repay their loans when the moratorium ends on 30 September 2020.
“If you have genuine concerns about not being able to make the payments after 30 September, contact the banks as soon as possible to explain your situation and seek to renegotiate your loan. Don’t wait for September to communicate with the banks or wait for the banks to communicate with you,” said the president of FOMCA, Datuk Dr Marimuthu Nadason.
Datuk Marimuthu further encouraged those who are saddled with several loans from a few banks to seek aid from the Credit Counselling and Debt management Agency (AKPK). The agency will provide aid in the form of counselling or loan restructuring to safeguard the borrowers’ welfare.
That said, Datuk Marimuthu also reminded borrowers that they should not hesitate to file an official complaint with Bank Negara Malaysia (BNM) if they feel that their banks are being unreasonable during negotiations. “Where there is a genuine case of badly affected consumers not getting a fair and compassionate deal with the banks, the central bank must act to protect the consumers and ensure their financial wellbeing,” he said.
Datuk Marimuthu emphasised that the current economic situation, with issues such as job and income loss, has made it especially challenging for many Malaysians to keep their loan obligations. “This is certainly not a time for lending institutions to carry out business as usual. Banks need to play a more compassionate role in helping consumers facing genuine problems to go through this difficult period,” said Datuk Marimuthu.
The ongoing six-month automatic moratorium is slated to end on 30 September with no likelihood of a blanket extension, although some banks – like CIMB and AmBank – have mentioned that they may consider a targeted moratorium instead. In light of this, entities such as AKPK have begun urging the public to start planning and preparing for possible post-moratorium financial challenges instead of waiting until the last minute.
You can read Datuk Marimuthu’s full statement here.
(Source: The Sun Daily)
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world