Tag Archives: credit card

A Must Read For Malaysian Credit Card Holders: ‘Those Bloody Banks, Credit Card Companies and Bank Negara!’

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Posted by Vedis the DMP Blogger on January 17, 2010 – 8:35 am
Filed under Credit Cards, Financial News & Updates

I, the AKPK DMP blogger, chanced upon this interesting article, ‘Those Bloody Banks, Credit Card Companies and Bank Negara!‘ by Fahri Azzat at loyaburok.com, at The Malaysian Insider.

You may have missed this article that relates how banks and credit card companies can be so unreasonable when it comes to credit card terms. Enjoy reading!

(Source) JAN 16 — Diana Chee Vun Hsai, like many of us owned a credit card. She had two. One from Citibank Berhad, the other from HSBC Bank Berhad. On 7 September 2008, HSBC called up her to alert her about her credit card being used. When she checked her purse, she discovered both her credit cards were missing. She notified both the credit card companies of the loss of her credit cards on the same day and lodged a police report at Dang Wangi police station about it the following day. She understandably thought that was the end of the matter. She was wrong.

On 16 September 2008, Citibank told Diana Chee Vun Hsai they were billing her for the unauthorized transaction of RM 1,859.01 done on 6 September 2008. She responded through her solicitors to inform Citibank that the limit of liability for a lost credit card was RM 250.00 as provided in clauses 15.1, 15.2 and 15.3 of the Bank Negara Guidelines BNM/RH/GLO-041-01 (“the BNM Guidelines”). Citibank’s lawyers replied pointing out to her that the terms of her credit card the crux of which is as follows:

“Our client imposes a duty on the cardholder to notify the loss one (1) hour prior to the unauthorized use and to provide proof of acting in good faith and exercising reasonable care and diligence to prevent such loss or theft of unauthorized use of the card before our client can exercise its discretion whether to resolve the liability or not. Such a clause is not in contravention of the Bank Negara guidelines.” (emphasis mine) Read More »

Don’t Want To Enroll In AKPK DMP? Then, Start Managing Your Debt Now!

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Posted by Vedis the DMP Blogger on January 9, 2010 – 8:50 am
Filed under AKPK Debt Management Plan, Auto Installment Loans, Cash Is King, Credit Card Debts, Credit Cards, Debt Management Tips

You have a debt problem, but it’s not serious enough to get you into AKPK debt management program yet? Lucky you! If you don’t want to resort to enrolling in AKPK’s DMP or declaring bankruptcy in future, then make sure you start managing your personal debt now.

Here is Raymond Roy Tiruchelvam’s article on How to Manage Personal Debt.

THE “easier said than done” phrase latches on to this topic like ants to sugar. While getting into debt is made easier today with the many innovative marketing plans undertaken by financial institutions, getting out of if, leaves much to be pondered.

For those who do not see the light at the end of the tunnel, Bank Negara has introduced AKPK or Credit Counselling and Debt Management Agency. I am assuming a single source of funds being financial institutions, and not “ah-longs” and other unconventional sources.

There is actually one step to be undertaken prior to managing your debt, which is managing your cash flow. It does not mean that if one is a millionaire, there is no need for debt management … well perhaps there is no need, since the ability to source for debt is high, but everyone will need to manage their cash flow, let it be millionaires or paupers.

Let’s look at some steps that we can take to ensure that we are able to manage our personal debts so that we do not go into the “PN4” or “PN17” status (which for companies implies a financially distressed state).

Let’s start with liquid debts, credit card and car loans. For the former, never follow the minimum payment requirement of the bank, which is 5% of outstanding sum. The reality is that it does not diminish in 20 months (5% X 20 months = 100%) – which is the general misconception.

Instead, spread the payment over a reasonable payable period. For example, if you purchase a personal computer for RM1,500 perhaps, you want to make a RM300 monthly payment over 5 months, rather than pay RM75 in the first month, then RM71 for the second month and so on (assuming one follows the minimum 5% payment, excluding interest charge).

As a matter of fact, if one were to purely pay the 5% minimum payment, do you know that it will take 50 years for the sum to trickle down to RM100. And mind you, even with that, the debt won’t be fully settled. Read More »

AKPK & Banks Say Not To Worry About Late Payment Charges On The Monthly Statements?

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Posted by Vedis the DMP Blogger on November 24, 2009 – 9:44 am
Filed under AKPK Debt Management Plan, Credit Card Debts, Credit Cards, Credit Counselors, Debt Management Companies, Debt Management Programs

AKPK Banks Late Payment Fee ChargesTell me you can still keep your calm after seeing the outstanding balance of your credit card as of today and in March is RM6,300 and RM6,400 respectively.

I think any reasonable mind will go mad or freaked out after seeing no noticeable decrease in credit card balance despite being in a debt management program, right?

This morning, I thought of doing a spreadsheet for all my credit card accounts. When comparing the figure of March and November statements of a bank, I was shocked to see RM6,300 and RM6,400.

How could it be? I had already been in AKPK debt management plan for one year, so logically, the amount owed should have dropped to less than RM6,000, right?

Ya, I was mad and freaked out. I knew it’s because of the late payment charges that showed up almost every month for the last few months.

I remember my Ipoh credit counsellor had told me before that there’s nothing to worry about the late payment fees. They would not show up anymore once the banks had everything updated.

I also thought the banks would remove the late charges from their record sooner or later, so I didn’t call or write to the banks. But after giving them so many months to get updated, the late charges still showed up in the statements.

Enough! Too much! So I gave AKPK Ipoh branch a call. As usual, the ever helpful Ms Lina answered the phone.

I told her about banks (except Public Bank) which still had the late charges printed on the monthly statements. After listening attentively to my complaint, Lina assured me not to worry about the late payment fees.

According to her, banks would stick to only collecting the agreed amount of outstanding balance plus interest charges. I hope the banks really do so.

To know the latest correct amount of each of my credit card, Ms Lina even gave me every bank’s phone number and name of person who is in charge of AKPK cases.

I did call one of the banks and raised my concern regarding the late payment charges. Again, I was reassured that there’s nothing to worry about the late fees.

Are You Worried About Your Credit Card Debt?

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Posted by Vedis the DMP Blogger on September 5, 2009 – 10:43 pm
Filed under AKPK Debt Management Plan, Cash Is King, Credit Card Debts, Credit Cards, Debt Consolidation Loans, Debt Management Programs, Debt Management Tips, Debt Settlement Plans, Free Debt Reduction Tips, Saving Money

DMP For Credit Card DebtAm I worried about my credit card debt now? No, I am not. But I used to be very worried and stressed out about it before I enrolled in a free debt management program called AKPK debt management programme (DMP).

What about you? Are you worried about your credit card debt?

You should be if your credit card debt has spiraled out of control; you pay more than 15% of your monthly income to your credit card bills or/and borrow cash from one credit card to pay another.

You are not the only one who is dealing with credit card debt nowadays. In fact, almost 40% of credit card holders are in the same predicament!

So what should you do to avoid the need of getting help from debt relief options such as debt consolidation, debt management program, or debt settlement and worst of all filing for bankruptcy?

Start doing credit card debt management to help yourself get out of debt as fast as possible!

Most financial experts will advise you to stop using your credit cards. Quit using credit cards is to prevent you from adding new debt to your existing outstanding balance.

If you have more than one credit card, pay the minimum payment on them all. Then, pay the most to the credit card with the highest APR. Once the card with the highest APR is paid off, keep paying the minimum payment to the rest of your cards and pay the most to the next highest APR. Do so until all the credit cards are paid off.

Another way to help you is try balance transfer deals that offer 0% interest free period for 6, 9 or 12 months to save some money.

Credit cards are convenient, but you don’t have to use them all the time and put everything from groceries to petrol to night’s-out on them. Instead of using credit cards, cultivate the habit of using cash to help yourself curb your spending habits and get into more credit card debt.

If you are really concerned about your credit card debt, start doing debt reduction before you end up resorting to debt consolidation, debt management plan, debt settlement or bankruptcy.

DMP Blogger, Should I Apply For A Credit Card?

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Posted by Vedis the DMP Blogger on September 4, 2009 – 12:37 pm
Filed under Credit Cards

DMP Blogger Prefers Cash Over Credit Card“Should I Apply for a Credit Card?” If you ask me – The DMP Blogger – this question, it’s for sure that I will discourage you from applying for a credit card. :-)

As a credit card debt woman who is currently under AKPK’s free debt management program (DMP), I will surely advise you to cultivate the habit of using cash, rather than swiping credit cards.

But, I am not your loved one or family member, right? Why would you want to listen to me? So, the decision on whether you should apply for a credit card is up to you.

With credit card ads in television, newspapers, websites, shops and almost anywhere and everywhere asking you to apply for a credit card, it’s difficult to resist the temptation.

Besides, when you look around, most people have credit cards or multiple credit cards. So, why shouldn’t you apply for a credit card?

Furthermore, you have been told that there are endless benefits associated with having a credit card. The most important benefit of a having credit card is none other than the convenience it offers. Instead of carrying a lot of cash on you which is both inconvenient and unsafe, you just need to carry a plastic card with you.

Moreover, you get interest free credit. This means that you don’t have to pay the bills till the next monthly billing cycle. With this benefit, you can buy now and pay later when your salary arrives. What a great reason to apply for a credit card, isn’t it?

In addition to that, you get to enjoy interest-free installment payment plan. You can buy the Samsung LN32B460 32-Inch LCD HDTV or Orient Men’s Multi-Eyes White Automatic Watch you have been longing for today and pay for it in installments on your credit card.

Another good reason to apply for a credit card is the discounts on shopping. Due to the tie-ups between credit card companies and the merchants, you, as a credit card holder, get to enjoy deeper discounts, reward points or even cash back benefits.

See, there are so many benefits of applying for a credit card, aren’t there? So, why shouldn’t you apply for a credit card?

Whether you should or should not apply for a credit card, it’s a matter of personal choice.