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Loan payment: Fomca urges employees affected by pay cuts to speak with their banks

09 Jul 2020 / 15:36 H.

PETALING JAYA: Employees who are affected by salary cuts or retrenchment and need to service their loan repayments, are advised to liaise with their banks.

The Federation of Malaysian Consumers Association (Fomca) has urged these individuals to engage with their banks now instead of waiting until September, when the moratorium period ends.

“If you have genuine concerns about not being able to make the payments after Sept 30, contact the bank as soon as possible to explain your situation and seek to re-negotiate your loan. Negotiate honestly to find the best way forward,” Fomca’s president Datuk Dr Marimuthu Nadason said in a statement today.

For those servicing multiple loans with various banks, he suggests contacting the Credit Counselling and Debt Management Agency (AKPK) for assistance.

“AKPK will provide counselling or if necessary, would help to restructure your multiple loans, giving serious priority to the consumers’ welfare. Again do not wait! Contact AKPK as soon as possible to enable them to assess your situation and help you,” he advised.

“However, if you genuinely think that the banks are being unreasonable, do not hesitate to make an official complaint with the Central Bank,” he suggested.

“Fomca is confident that the Central Bank will direct the banks to act with compassion.”

Meanwhile, Marimuthu acknowledged that these are challenging times for all, especially workers and consumers.

“There are issues of job loss, income loss, family pressures and problems, an increase of mental health issues and a whole series of stresses and pressures on individuals, households and families.

“For every family, certainly one of the biggest concerns is keeping their loan obligations for their homes or car,” he said in the statement.

“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. The Central Bank has a critical role in ensuring at these difficult times, that consumers are protected and their financial well-being secured,” he added.

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