FOMCA Needs Rakyat Support to gain signature on this Moratorium rip off by the Banks and BNM.

BNM has just released a new FAQ dated 1st May 2020 and it denies reversing its decision to offer automatic 6-months payment deferment for hire-purchase and fixed-rate Islamic financing. In FAQ #2, it now states that interest/profit will also be accrued over the deferment period for these loans and will also need to be repaid once payments resume post-deferment, which is completely opposite to what was mentioned in the earlier FAQ.

Central Bank is being inhumane for allowing banks to charge accrued interest during the moratorium. The move is equivalent to ‘daylight robbery’ on borrowers whose finances are already stretched thin during the COVID-19 pandemic period.

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.

This is real case of misleading the consumers and Bank Negara Malaysia (BNM) seems to be overlooking the plight of the public amid the Covid-19 crisis. In this instance, especially in this real near tragedy where people are facing so many issues, like loss of jobs, loss of income, an uncertain future… to put this additional burden on consumers is very unfair and disgraceful.

With this sudden procedural change, people are expected to come up with the six months’ accumulated interest charged to borrowers over the moratorium period. This is absolutely absurd and demeaning.

Central bank should understand general public burden, with many having lost their jobs due to the movement-control order (MCO) enforced to halt the virus from spreading. BNM should focus on reducing the public’s financial burden instead of helping banks gain profit during this tumultuous and challenging times

“As a centrifugal bank, BNM should not only look at banks making profits, but also the welfare of consumers as well. They should put that ahead of what banks want. Consumers’ well-being should be given priority at this time when they are the ones who are badly affected.

Majority of Malaysians do not have the means to pay the accumulated interest in one go, adding that private sector employees have been badly affected and will need to prepare and recover during the post-MCO stretch. Nobody has the capacity to pay in bulk. Even after the MCO, it is going to take time for them to recover. Even those who have been retrenched and are looking for new jobs will need to take a big pay cut. All these are major burden faced by consumers at large.

FOMCA hopes that BNM will take into consideration the adversities and mammoth tasks faced by the people and review and rescind its recent decision.

Banks want to collect as much as they can. What is the point of having a regulator if the centrifugal regulator does not protect the consumers? What if consumers withdraw all monies from banking system...? Which bank can sustain the weight?

FOMCA hope BNM will put its foot down and protect consumers during this pandemic.