Kuala Lumpur, Friday, 01 March 2019 – 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. 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.