By the way, it’s very important to understand that when we owe someone some money, we need to pay it back. That someone may tell us that they will not charge us interest because we are their good friend or they may tell us that interest will be levied. To me, both are just fine. We borrowed and thus we pay back, slowly perhaps. In this case, an extra 6 months is given due to the current COVID-19 situation.
The only Hire-Purchase I have at the moment is for my wife’s car and it’s under Public Bank. So, they sent me a message just days ago telling me the below message. My HP a/c is eligible for 6 months moratorium from April 2020. Deferred instalments will attract interest. Just go to that site to confirm and they even gave me a period of 1 month plus to complete the form. That’s by 28th May 2020. I think this is fair enough and I do think we need to also do our part as well.
This was what Bank Negara Malaysia has clarified. Article in FreeMalaysiaToday.com BNM deputy governor Jessica Chew Cheng Lian said no one needed to apply for the moratorium but the banks had to comply with the Hire Purchase Act 1967 and obtain an indication of agreement from customers. She said the banks would be reaching out to their customers to guide them on what to do.
BNM Prudential Financial Policy director Cindy Siah Hooi Hoon said the central bank had never stated that interest would be waived, adding that it had made it clear previously that interest would continue to accrue. Chew acknowledged the confusion and said, “We do regret that very much and we do hope that we can help to set things right and clarify matters.” Do refer to the full Article in freemalaysiatoday.com
Three findings. (1) Moratorium is still in place from April till September 2020. (2) Reply to your bank and follow what they ask you to do to confirm the moratorium. (3) They will provide options to you on what to do with the interest, choose one. Happy understanding.
Next suggested article: Banks’ profits good indicator of market