Study Loan Defaulters To Be Blacklisted. Oh Not That Lame Threat Again!
Higher education loan defaulters can forget about seeking financing for fancy cars or dream bungalows. Their names will now come under a blacklist to be supplied to banks and credit card companies.The first batch of 1,100 defaulters, who have yet to settle their loans with the National Higher Education Loan Fund Corporation (PTPTN) over the past 10 years, will have their names listed on the database of Credit Tip Off Service Sdn Bhd (CTOS).
The remaining 37,484 errant borrowers could face the same action if they continued to ignore the letters of demand (LOD) sent by the corporation, PTPTN chairman Datuk Razali Ismail warned.
“This (blacklist) will affect one’s financial credibility and the defaulter will not be able to secure any other type of loans from local banks,” he told The Star yesterday. CTOS is a private credit reference agency that provides information to financial institutions screening their clients.
Bad loans incurred by PTPTN total more than RM800mil(?) and the corporation hoped to recover 70% through such measures, said Razali.
“These defaulters should get their priorities right. They seem to take us for granted, believing we will not initiate any punitive action.” He noted that many defaulters were already working, with some holding professional jobs. However, they still refused to settle their loans.
Razali said the corporation had been flexible and even offered to accept repayment from as low as RM50 a month but received no response when the second round of LODs were re-issued last year.
He also noted that some defaulters were willing to pay between RM500 and RM700 monthly on their car loans but were reluctant to pay a minimal amount to settle their study loans.
“They should be able to manage their finances like professionals and not test our patience,” he added. (R.S.N. Murali, TheStar)
***** How long is the PTPTN going to issue threats that have no bite? There are RM5 billion worth of loans still pending. (How the devil did the outstanding loans suddenly become reduced to RM800 million? Did PTPTN actually collect RM4.2 billion over the past few months? Come on!!) When is Razali going to get out of his cushy chair and actually DO something about it instead of fudging figures? Make an example of a few of these recalcitrant and selfish fellows and the rest will fall in line. Of course they could appeal to big brother Khairy Jamaluddin, and for all you know KJ may come out with both guns blazing in support of this greedy bunch as he did in the case of Mara loan defaulters.
God bless our country and save us from incompetents and politicians.
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Labels: Bureaucratic Buffoonery, Inefficient Government Department, Shameless Beggars., Unmitigated Greed.
posted by The Malaysian. at 2/01/2007 12:03:00 PM
3 Comments:
The inaction of the agency only reinforces the perception of the loan defaulters that it is powerless to act. Action should be taken either through civil procedures or through administrative measures liking blacklisting travel overseas.
Or else make public university education free for all citizens. What has become of this new generation that shamelessly takes loans and defaults in repaying.
I studied by loan in local university in the 70s and the first thing I did was to settle my loan before buying a car or spurlging on an other luxuries(that includes eating out in expensice restaurants).
roombakasta my friend, if all these loan defaulting 'graduates' could read your comments and emulate you, it would be wonderful. But unfortunately the country and especially the government has pampered knuckleheads and numskulls and poured billions of our money in the hope that by a miracle some of them will turn out ok. However the downside is that most of these ungrateful and selfish lot feel that it is their god-given right not to settle the loans. It is not that they do not have the money, they simply refuse to part with it expecting the government to ultimately pick up the tab. "You reap what you sow," comes to mind.
My husband and I are both sponsored students that were given the opp. to study overseas. Up until now, we're still paying our dues. It is tough not to have the means to live a luxurious lifestyle, but we know that we will never be able to be where we're at now if it's not for the government scholarship programmes. Most of the scholarship/loan payment are without interest--so for those who may not have the dough yet, I'm sure there's always a way to negotiate a repayment schedules that fits you. We have to make sure more deserving students with merits to have their chances to get the best education. That's our responsibility as a good citizen. "Ask not what your country can do for you: Ask what you can do for your country"
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