391) PPIM TELLS BANKS TO BE MORE PROACTIVE, ADDRESS BORROWERS DROWNING IN DEBT - NEW STRAITS TIMES - 11/03/2024
KUALA LUMPUR: Banks must play a more proactive role in curbing the plight of borrowers drowning in overdue debts and those blacklisted, said the Malaysian Muslim Consumers Association (PPIM).
In a statement, its chief activist Nadzim Johan said banking institutions prioritise "profit over people" and lack the responsibility in addressing debt management.
Over 10,000 individuals, predominantly aged 25 to 35, were driven to bankruptcy in 2023 due to various factors including personal loans, vehicle leasing, and business debts, he said.
He said the Credit Managament and Counselling Agency must also recognise that it imposes exorbitant management costs, "exacerbating the financial woes of struggling borrowers".
"Enough is enough! Banks must wake up to the reality that countless borrowers are sinking under the weight of their debts, yet they continue to ignore their cries for help," said Nadzim.
He called for a radical overhaul of banking practices, proposing that banks offer conditional opportunities for restructuring overdue loans.
This, he said, can be offered to borrowers who still hold steady employment and are capable of making repayments.
"The days of heartless banking practices are over. It's time for banks to show compassion and empathy towards borrowers who are trapped in a vicious cycle of debt," said Nadzim.
Article by: New Straits Times
PPIM TELLS BANKS TO BE MORE PROACTIVE, ADDRESS BORROWERS DROWNING IN DEBT
