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!

---

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.