The extended six month moratorium for loans, which enabled consumers to defer their loan payments for six months, will end on September 30. With the end there will be differing responses and concerns of consumers. There are those who would be able to continue with their loan payments; they should certainly do so.

Yet others, especially those affected by income loss or job loss, would be greatly worried and apprehensive

as that date arrives. They may simply lack the means to make their payments.

FOMCA has a strong message; do not wait for September to communicate with the banks or wait for the banks to communicate with you. If you have genuine concerns about not being able to make the payments after September 30, contact the banks as soon as possible to explain your situation and seek to re-negotiate your loan. FOMCA hopes that the banks will act on compassion. FOMCA is confident that the Central Bank will direct the banks to act with compassion. Negotiate honestly to find the best way forward.

However, there may be consumers with multiple loans, for example car loans and housing loans, affecting more than one bank. If you are unable to make loan payments for all your loans, it is best to contact the Credit Counselling and Debt Management Agency (AKPK) for assistance. It is our understanding the AKPK is being strengthened to face the substantial increase of consumers expected to seek assistance. AKPK will provide counselling or if necessary would help to restructure your multiple loans giving serious priority to the consumers’ welfare. Again do not wait! Contact AKPK as soon as possible to enable them to assess you situation and help you.

Farther, if in negotiating with the banks, be honest and find the best situation forward. However, if you genuinely think that the banks are being unreasonable do not hesitate to make an official complaint with the Central Bank. It is out strongest and sincere hope that the Central Bank would respond speedily and effectively to respond to consumer complaints and issues. Where there is a genuine case of badly affected consumers not getting a fair and compassionate deal with the banks the Central Bank must act to protect the consumers and ensure their financial well-being.

These are indeed challenging times for all, especially for workers and consumers. There are issues of job loss, income loss, family pressures and problems, an increase of mental health issues and a whole series of

stresses and pressures on individuals, households and families. For every family, certainly one of the biggest concerns is keeping their loan obligations for their homes or car. With economic stresses, there is a very real possibility that they could lose their homes, their cars or other assets.

This is certainly not a time for lending institutions to carry out business as usual. Banks need to play a more compassionate role in helping consumers facing genuine problems to go through this difficult period. The Central Bank has a critical role in ensuring at these difficult times, consumers are protected and their financial well-being secured.

DATUK DR MARIMUTHU NADASON
PRESIDENT, FOMCA