A friend who works with a bank in their debt collection department told me that there are many people who owe the bank money due to the misuse of credit cards. Well, at first, they were able to settle their credit card balances monthly, but then they lost their jobs and unfortunately, there are other more pressing matters that needed to be looked into so much so that they don't see settling their credit card debts with their savings as a priority.
I asked him what he could do in collecting the debts. He said that all he could do is issue legal letters to these clients, take them to court and if their debt is not that much, the clients couldn't even declare bankrupt.
According to him, after a few years of non payment, eventually, the bank will have to write off the debt. I know that there are many people who are saddled with credit card debts. The amount may not be too much per card. And those who know of this loophole will try to drag on and on and not make payment knowing that one day, the debt will be written off, which it will.
My own cousin has a credit card debt of only MYR5K or so. The debt collector asked him to pay MYR3K+ only, while the rest would be a discount for him. Yes, they do give discounts even for debts, but so far, my cousin hasn't responded. Bad, huh?
I asked him what he could do in collecting the debts. He said that all he could do is issue legal letters to these clients, take them to court and if their debt is not that much, the clients couldn't even declare bankrupt.
According to him, after a few years of non payment, eventually, the bank will have to write off the debt. I know that there are many people who are saddled with credit card debts. The amount may not be too much per card. And those who know of this loophole will try to drag on and on and not make payment knowing that one day, the debt will be written off, which it will.
My own cousin has a credit card debt of only MYR5K or so. The debt collector asked him to pay MYR3K+ only, while the rest would be a discount for him. Yes, they do give discounts even for debts, but so far, my cousin hasn't responded. Bad, huh?
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