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

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)

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.