Change to loan moratorium will worsen people’s plight, says Fomca


Ravin Palanisamy

Fomca says Bank Negara should focus on reducing the public’s burden instead of helping financial institutions gain profit amid the Covid-19 crisis. – The Malaysian Insight file pic, May 1, 2020.

A SUDDEN change to the six-month moratorium on hire purchase (HP) and fixed-rate Islamic financing loans will only add to the people’s burden, said the Federation of Malaysian Consumer Associations (Fomca).

Fomca chief executive Paul Selvaraj said Bank Negara Malaysia (BNM) seems to be overlooking the plight of the public amid the Covid-19 crisis.


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Comments


  • Finance MiNister is minister of the banks bcos he was a banker before. FM. is trying to make banks earn more money in expense of the suffering borrowers. Real shit useless FM.He is not a MP and hardly interact with rakyat. So frankly he doesn't know how rakyat suffer and probably his Ind is more tuned to financial implications than rakyat needs.

    Posted 3 years ago by James Wong

  • Why only on Hire-Purchase loans? Housing loans are very much bigger. Then there are personal loans, business loans, etc . This is not a time to exploit the consumers, to hoodwink them.
    The one important question to answer is this: After the "moratorium", will the TOTAL amount repayable to the bank be EQUAL to or MORE THAN the total that he/she would be paying if there were no "moratorium" period?
    If the FINAL TOTAL AFTER MORATORIUM becomes MORE THAN THE FINAL TOTAL WITHOUT MORATORIUM, than the moratorium is a farce and exploitative of the consumers as they end up paying more. Thus the moratorium actually benefits the banks and not the consumers, and this is unconscionable as the moratorium is supposed to assist the consumers and not the banks make more money out of their difficult period! BNM must pull up its socks and MAKE SURE that consumers DO NOT END UP PAYING A BIGGER FINAL TOTAL.

    Posted 3 years ago by Ravinder Singh