Just to share my recent experience with all ya outta!

Recently, I received a call from an outsource company. The person whom got my contact was previously working in a big bank SxBB
She introduced herself again to me and presenting herself from the so-called outsource company.

Basically, they act for and on behalf of all banks in malaysia to do credit balance transfer at lower rate than banks. You name it and they have it!

According to her explanation, their company is authorized by all banks in Malaysia to do balance transfer for credit card. Unlike other credit cards, they are now able to do balance transfer by itself.

Meaning that if you are CIMB cc's holder and you need to transfer cimb's balance to another bank credit card in order to do the balance transfer.

But now I'm able to do balance transfer just using my own CIMB's card and repay the balance with interest back to CIMB without hassle transferring to other banks.

So here i came with my question and asked her: Why can't I just direct deal with cimb bank but need to go thru you? I never heard such outsourcing before? She answered me that it is because this is internal bank policy which didn't disclose to outsider. The main aim of this plan is to help people to pay off card debts at lower rate and smooth out cash flow.

Below are the rates that she currently offered:-

CIMB - 14% p.a. at least 24mths
EON - 13% p.a. at least 36mths
HSBC, CITI, HLBB AND MORE - approx 14.5% p.a. min 24-38 mths

What i need to do is just to visit her office located at Kota Damansara, bring along my credit card (not even required my IC) and they will swipe for me to process the balance transfer this sound even cunning as I never heard that balance transfer required card swipping!!!

So I didn't take up this plan as this is rather sound like a fraud or conman!

After a couple of week, i met one of senior manager in CIMB and i mentioned about this company to him. Surprisingly this is a rather new scam!

According to the manager, this company is a so-called finance company *bear in mind not ah long*
They apply all merchants from all banks so that they are fully equiped with all banks merchant.
What they did was they registered themselves as furniture store/ electronic device store which very high chances to apply for 0% installment schemes. So they just take our cc to swipe at the amount of balance transfer with interest.

After that, the company will call to our card holder bank to inform them that this transaction would like to apply for installment and thereafter the bank will charge us mthly installment.

Yet what they gain from here?

Well, the company will gain the interest charge based on the balance transfer.



This post has been edited by princess_autumn87: Apr 29 2009, 05:52 PM

its not new la. basically all scam on balance transfer using this method.
some even said that its not even a scam. they claim bank negara is aware about their m.o. but to me it is a scam.

This post has been edited by rognales: Apr 29 2009, 05:56 PM

so smart, but it's still legal right? otherwise their merchant accounts would have been terminated.

This post has been edited by alien0110: Apr 29 2009, 05:58 PM

its not legal to use the credit cards this way.

ya, but i don't think bnm is doing there work. anyhow i ald reported to bnm and waiting the outcome

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Added on April 29, 2009, 6:00 pmya, once the bank find out and have the right to terminate them

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Added on April 29, 2009, 6:01 pmhehe.. yup yup...

PS: i love your teddy.. so cutteeee

This post has been edited by princess_autumn87: Apr 29 2009, 06:01 PM

old news...

i got this 1 year + ++ ago

if i'm not mistaken there are few threads in LYN offering services such as what you have mentioned here... should we report it to bnm?

ya, we should fight against SUCH OLD NEWS rather than some ppl jst naggin old news but can't help much

Wait, the defination of scam is an attempt to defraud a person or group by gaining their confidence.

I don't think this one considered as scam as they did not scam your money (or love)... they help you to get lower interest rate compared to those normal credit card interest rate per month.

wahlau.. tis is so horible.. jus make decide not to even touch credit card.. wat bout debit card? can tis be done to debit card as well.. no right? as debit auto deduct from our bank balance..

what for to use debit card to perform BT since you have money in your bank?

At ,http://forum.lowyat.net/index.php?act=Search&f=162 , type in epp,so many la these type of company.!

so u think all these is legally right to going on?

Yes,for those who really need these type of service. BT need new card,certain people account already not that beautiful for new card approval.

Dearie, i am agreed to yr view to manage the cash flow.

However, it is better seek "legal" way and negotiate with bank

Banks can help

jst my 2 cents advice. bcoz this is not the good alternative!

You are participating in a scam to cheat the bank when you do this.

CHEERS for u babe

Have a read here:
http://forum.lowyat.net/topic/796677

wow, tx for the sharing... tq

EPP agents are pure liars. Here is the numbers to proof it.



The amount owed is only RM13,140, yet the interest is 13.2% pa.
By going to the bank, the loan applicant can convert their CC loan to personal loan, about 8% pa.

tx hun for proving yr caculation here

It's rather the consumers itself to choose whether to use their services or not. They use the loopholes of bank 0% merchant and provide such services to CC users.
I don't think this categorized in scams, as they dont cheat your money, just convert your outstanding to 0% , but in middle they earn some interest which is always lower than bank's interest. I remember many years ago gold and jewelery traders already provide such services.

Yes, they are not cheating your money, they are cheating the CC company.
I wonder do you still call that a scam.

what is the different if they cheat the banks? isn't still cheating? and so u thinkin they helping ppl to clear their debts and this will help to build better credit in the end?

I think the agent who did that calculation is really mathematically challenged (dumbass).

The EPP amount is RM18,000. That amount is already = [total owed] + [total interest].
Why calculate the interest on the EPP amount(that already included interest 27%)?
It should be on the total owed amount only.

Therefore:-

Calculation 1
= RM18,000 / 1.27 = RM14,173.23 (total principal or total owed)
= RM14,173.23 x 27% = RM3,826.77 (total interest)
= RM18,000 - RM3,826.77 = RM14,173.23
= RM14,173.23 – RM12,000 = RM2,173.23 (extra cash return to cardholder’s)
= RM18,000 / 60months = RM300 (payment to EON Bank’s direct every month)
= At this scenario, no extra cash needed for restructure fees

Total owed is RM14,173.23
Extra cash should be RM2,173.23 instead of RM1,140.00

Therefore interest is (RM18,000 - RM14,173.23) / RM14,173.23 = 27%


Beware when dealing with that agent! Know what you going for. EPP is not reversible!

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Added on May 12, 2009, 10:13 pmFor me, this service is important in the continuity of unsecured loan in Malaysia.

I believe the bank doesn't object with those services, reason being:-

1. each time a credit card holder swipe it's card for; in this case the EPP;
the bank collect a fee already from the merchant.
(notice the 2%~3% credit card charge at any lowyat PC store?)
2. they can be sure that the credit card holder will want to finish
their debt, by doing these EPP, therefore reducing the risk level
of the unsecured loan
3. now that they know the market for this EPP is good,
they also can fight back by offering a better deal.

If you see PUBLIC BANK and MAYBANK, they all have issued out similar kind of Balance Transfer plan with a much-much lower charges.

Take Public Bank for example, giving EPP for 3 years with only 1 time charge of 10%. Simple calculation, that's 3.33% p.a.. Do you know any EPP service provider out there that gives lower charges than this?

Again, Maybankard offers 0.413p.m. for 3 years also. Simple calculation again, 4.95%p.a.! Again I ask you, do you know any EPP service provider out there that gives lower charges than this?

Again, don't you worry about this EPP (scam or no scam), they don't rip people money's off, they help them gain more money by saving interest rate to be paid to the bank.

What you should worry now is those Ceramics selling Scheme that now has been widespread all over the country. Although people say all nice thing about it, I'm sure it will tumble someday. And I'm not going to repeat the same situation for the 4th times!!!

This post has been edited by firadaboss: May 13 2009, 09:05 PM

Yup, they charge extra commission.
I only see idiots fall into this trap.

big applause to ya

Yeah, pity for them who don't do research. I've been doing this Transfer-The-Balance game for almost 4 years now. All the balance transfer rates are within my head oledi.

(I confess, I am a Compulsive Shopper , see the evident)

hehe, salute. But u found yr way out now. Spend smart

To clarify, bank does take action on this "illegal" exploitation only upon finding out.
It's "falsely declaration of business information".
Thus you see that these agent's (mostly ah longs) can only offer merchants for local banks as oversea banks are more prudent in doing site visits and checks to ensure that the business is operating as declared.

yeah @b00n

Last time I remember they do include Citibank in their plan offered, but now no more.

Probably it's true what you've said.

I came across that agent offering for all banks including citibank, hsbc and so. But the rate is rather scary. 18% p.a. haha

So you are rite

try study wht is flat rate and effective rate for personal loan. use personal loan to cover credit card loan is a dumb way to do. personal loan effective rate around 21%, which is more than credit card.

try study wht is flat rate and effective rate for personal loan. use personal loan to cover credit card loan is a dumb way to do. personal loan effective rate around 21%, which is more than credit card.

Why you so boh liao reply me in a 2009 post. Now is the year 2017.