Cash-strapped borrowers advised to contact banks
KUALA LUMPUR: The Association of Banks in Malaysia (ABM) would like to advise bank customers to initiate contact with their respective banks promptly when genuinely faced with difficulties in repaying their loans.
In a statement released by ABM, it stated that bank customers should commence communication with their respective banks to discuss repayment options and arrangements such as debt restructuring and/or refinancing.
Financial institutions also play an important role by contacting borrowers promptly, upon detecting signs of repayment difficulties so that alternative repayment options can be explored.
It is also important to note that a borrower's credit rating may be affected if the borrower is deemed a loan defaulter, hence, it is important to approach your respective banks to work out repayment alternatives before legal action is initiated against the loan defaulter.
Foreclosure or any form of legal action on defaulters can only be initiated when other reasonable attempts to reach a resolution have been unsuccessful.
If the bank customer is not satisfied with the decision of the financial institution, they can refer the matter to BNMTELELINK or seek assistance from Agensi Kaunseling & Pengurusan Kredit (AKPK), which may be able to provide aid via financial counselling and restructuring repayments through its debt management plan.
The ABM has 26 members comprising the commercial banks that currently operate in Malaysia. The main objective of ABM is to promote the establishment of a sound banking system in Malaysia in cooperation and consultation with the regulators.
Guided by ABM's mission statement, "Forging public understanding for a responsible and responsive banking industry", ABM takes on the role of an important intermediary between banking customers and its member banks.
ABM aims to facilitate and create a conducive yet competitive banking environment while promoting orderliness and ethical banking practices. The public can call ABMConnect at 1-300-88-9980 for information on banking issues in the country. For more information, visit www.abm.org.my.