Saravana asked 3 years ago
Dear Mr Lau,
I am in a dire situation where I do have borrowings from a bank in malaysia and I have paid close to rm 100k but the sum still remains as rm 155k because I missed a few payments along the way. This is close to 4 years account. My loan’s initial tenure was 5 years but now the bank is harassing me to settle the amount in full or else there will send a legal notice to the house and my worm place.
May I know , how many default payments in a row can the bank instruct their legal team to send a notice?
I made a payment 10 ago and the bank thru their collectors are harrowing me to make the full settlement or else they will issue a court order to declare me bankcrupt.
Can please help to guide me on this
KCLau Staff answered 3 years ago
Dear Saravana,
I understand that you’re facing a challenging situation with your loan repayment. However, I want to clarify that I’m not a legal professional and cannot provide specific legal advice. The regulations and procedures related to loan defaults and legal actions can vary depending the terms of your loan agreement, and the bank’s policies.
In general, when a borrower defaults on loan payments, banks may follow a process that could lead to legal action. This may involve sending reminders, engaging collection agencies, and eventually pursuing legal remedies if the debt remains unpaid.
If you’re facing difficulties in repaying your loan, I recommend taking the following steps:
- Contact the Bank: Reach out to your bank as soon as possible to discuss your situation. They may be open to negotiating a repayment plan or providing some flexibility given your circumstances.
- Seek Legal Advice: If you’re concerned about legal actions being taken against you, it’s advisable to consult a legal professional who can provide guidance based on the laws and regulations.
- Understand Your Rights: Familiarize yourself with your rights as a borrower and the legal procedures that need to be followed before any legal action can be taken against you.
- Financial Counseling: Consider seeking financial counseling or advice from a financial advisor who can help you assess your financial situation and explore options for managing your debt.
Remember that it’s important to take proactive steps to address your financial challenges. Engaging with your bank and seeking professional advice can help you understand your options and potentially find a solution that works for both parties.
Wish you the best.
KCLau