Hi, I want to know.
In Malaysia if the card holder pass away and left a big amount of debt.
Will the bank charge the debt to their family?
Or the bank will cover up itself?
Or base on different bank?
Pls give some comments.
Thx.

I think that depends on the terms and conditions signed in the application form. You may need to consult the bank directly on this matter.

the bank has the right to get back the amount owing (i.e. liability) from the estate of the deceased; in the event if the estate is 0, the family members are not responsible at all....

Islamic cards have takaful protection, so debt will be gone with death.

wow! if that's the case then Islamic cc's are really quite attractive.

taken from the card holders related savings, eg. KWSP etc, the balance forfeited, and it does not affect family members. Other than that "Syd G" already explained

Actually they are. But in Maybank's case, credit limit tend to be on the lower side.

I had a 1k limit on my Islamic card and 5k limit on my conventional card. Had to cancel the Islamic card due to RM50 tax.

Died already then attractive?

What about if principal holder dies, is the sub-card holder liable for the principal holder's debt?

This post has been edited by DarkNite: Sep 12 2010, 04:40 PM

... my cousin passed away last year

The bank send lawyer letter for authorization to withdraw from her EPF .After that it happened very fast and got settled .

before this i tot the balance will be forfeited but then again .. its A BANK!! .They will take money but never give back .

if can don't use credit card, but not everyone can follow this right

Oic.
Thx for all ur comment.
I thought their immediate family will have to take up the debt.

Hmm can it be that's one of the reasons why banks ask for your EPF contribution statement upon applying for credit card?

family members dont have any responsibility on the debt.
regarding epf, i know someone who get his epf without paying single cent back to bank.


just dont over use and pay on time, then no need to worry about it.

buy non affordable to show off, but your life are totally off if you cant pay it back.

If you die and your family don't want to pay, then get yourself the CC insurance. Most bank offer this facility. Covers up to RM100K. You only pay the premium if you got balance in your CC monthly.

Better still, dont carry a balance. Pay off asap so that if you die anytime, nobody's gonna be burdened

No, the bank is not allowed to "ask" the family member to pay on behalf of the deceased. They may however collect from the "assets" left behind, like for instance the EPF example above; but it's going to be a hassle and long procedure. So if the amount is not big; the bank are most likely to "write it off" their book as losses then pursuing the action.

That being said, if there's a supplementary card being offered and spent; there's loop holes in the law and T&C where the bank has the right to claim from the supp card holder.

p/s: if the bank "harass" the deceased's family to collect debts; one may report the case to BNM.

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Added on September 15, 2010, 5:04 pmNo. EPF upon application is just a proof of steady income. Also, by calculating backward on the monthly EPF contribution, your salary would be known. Thus it verifies your income stated on the form.


This post has been edited by b00n: Sep 15 2010, 05:04 PM

only 1k limit????

my previous islamic cc got 8k limit, just like other conventional cc

how about wife? still can rite

Wow... if balance on the Islamic card is written off upon death... then it might be a good idea to go on a spending spree during the last days of the cardholders' life.

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Added on March 20, 2011, 4:25 pmHow much is the premium as a percentage of the outstanding balance? If the balance on the card is RM10,000 then how much premium have to pay for that month?

This post has been edited by simplesmile: Mar 20 2011, 04:25 PM

If the deceased died without a Will and have money in the Account, I would advice not to inform the Bank until you have taken out the money.

if you have ATM Card, better you take out all the Cash and then only inform the Bank

After you have taken out the Cash, you need to inform the Bank that issued the Credit Card of your FIL Death by giving a copy of the Death Cert and ask the Bank to immediately Cancel the Cards.

Ask the Bank to charging any more additional charges / interest until the financial affairs are sorted out.

Then does your FIL have any surplus estate / Assets

Banks cannot sue a Dead Person but they can sue the Estate or the Admnistrator of the Estate

Do you have any Lawyer friends who can help you or perhaps your Insurance Agent who can give detailed advice.The position of the Law is that you can only bequeath Assets and not Liabilities.

So for Loans, unless any of the beneficiary was a Joint Borrower, no other person will be liable for it.

But as the Property was charged, the Bank will need to be repaid. Hence, either the Housing Loan must be settled or the Bank will auction of the Property with the Balance of the proceeds after netting of the Principal Sum to be distributed to the beneficiaries.

By Right, the Administrator is suppose to settle all liabilities before distributing the surplus assets. This includes paying off all other liabioities of the deceased such as Taxes, CC, etc.

The Creditors can take action against the Administrator only and not the beneficiary.

FYI, Insurance monies are excluded from this and can be paid directly to the Beneficiary without any set-off of Liabilities due to Lenders / Creditors

I believe EPF Monies can also be paid directly to Beneficiary without set off of loans ourstanding.

Pls could someone advise is above information still apply?

My relative just passed away. He has epf and owns a house (fully settled) but owe some credit card debts.

Will the banks sell off the house to get back the debt from credit cards?

my condolence for your loss


To give a quick answer to your question

1) EPF follows the nomination process. If your relative has made a nomination, thing will Just follow who he nominated.

You will have to take his death certificate and go to the nearest epf office to enquire.

Else will follow the distribution act.

2) Credit card. Inform the credit card issuer of your dad death and ask them to cancel the card and appeal for the interest to be freeze pending whatever distribution of the estate.

You will need to send this letters via registered mail or delivery by hand with acknowledgement if things get ugly and they still charge compound interest which the bank is still entitled.

As for the house, I suggest an alternative path to transfer the property which is via Small Estate Distribution.

It works under 2 conditions

1) value of the property is below rm2 mln

2)all beneficiary must agree to how the property is going to be transferred

Plus you can include all other assets including bank accounts, shares provided condition (2) is achieved

Please Google small estate distribution.

Go to the land office at Wisma Jpuem or nearest land office if you are from outside Klang Valley. They are very helpful and understanding and the process can be settled in under 6 mths.

You don't need lawyers and its very cheap.

Cheaper than even Amanah Raya

But conditions (2) must be achieved and you must have a property and value of property is below 2 mil to be distributed

P/S what is the credit card debt.

Remember, Banks can't sue a dead person but can only sue the administrator of the estate

Btw. Under the small estate distribution, someone must agree to be the administrator

This post has been edited by cfa28: Aug 2 2020, 04:33 PM

Thank you for the reply.

The house loan is fully paid off.

My relative has outstanding balance on his credit cards. The amount is significant.

Hence wonder will bank take over the house in order to offset the outstanding balance?

Thanks again!

Actually a friend of mine, where he father actually left behind big pile of credit card debts. The bank actually willing to close the case by offering big discount for him to clear the outstanding

Technically they can only sue the administration of the estate.

The administration of the estate is only suppose to transfer the estate or property to the beneficiaries after setting all liability including loans and taxes.

If you are selling the property then it's simple but if you are only going to transfer ownership, do you have surplus cash to settle the credit card debts.

You can use the epf account

How big of an account are we talking about.

The insolvency act has been amended to increase the amount to declare someone as insolvent is RM50K.

Another point you have to consider is whether your relative owe irb any taxes.

Now irb is the biggest d1ckhead in Malaysia and will bite and not let go if your relatives own any taxes especially if they were doing business


What is the market value of the property

Does your relative have any will or bank account with the same issuing bank. Under right of set-off, the bank can use cash and deposit under the name of the card holder to offset against any amounts owing on other accounts

That's why my loan and deposit account are different banks as far as possible.

This post has been edited by cfa28: Aug 2 2020, 05:32 PM

The property value is enough to cover outstanding balance but my relative family has no intention to sell off the house. My relative has credit cards from banks with saving account. No will from my relative.

Hopefully the banks are kind enough to give discounts so my relatives family can settle the outstanding balance and can withstand their life.

Appreciate if you could provide other information or advice on this case.

Many thanks...

This post has been edited by HP Computer: Aug 2 2020, 07:32 PM

Honestly I have nothing new to add.

I take it from your case, your relative probably passed without a will.

In this case, you will follow the Distribution Act. But are the beneficiaries willing to cooperation on the distribution cos if you use the Small Estate Distribution its even cheaper than getting a probate with a will.


The only requirement is that you must have a property or properties with combined value of below RM2 mil and all beneficiaries can agree with the distribution allocation.

But your issues is with the credit card debt cos the executor of the estate is not supposed to distribute the estate until all liability are settled.

Who is going to be the executor?

You also need to find out who is the nominee for the epf account.

You better hope it's not the parents of the deceased cos it it is, you're forked.

It then goes to the beneficiaries of the deceased parents either based on the parents will or Distribution act at the time of the parents passing.

But first thing first is

1) Find out who is the EPF nominee

2) how much cash can you withdraw using ATM

3) inform bank to freeze the CC after taking out the cash in (2) and try to do final settlement. Important to get in writing that whatever payment you make, its considered as FINAL SETTLEMENT. You must include the words final settlement in your letters to the bank and if it's accepted, the bank then cannot ask for more money in future.

4) go to the land office to ask on the procedure for the small estate distribution

Upon notice of death, Banks will usually send a letter drafted by lawyer stating the outstanding debt and that interest will continue to compound until full settlement by the estate of deceased. Legal action will be taken if there is no settlement.

What we can do is to inform bank of the intention to repay upon distribution of estate. On settlement, can negotiate with banks to waive all compounded interest and only paid the principal amount owed on the official date of death. Banks will usually settle for that amount because at least they receive something and do not need to take legal action. (Own experience)

If someone knows he is dying, he should be going on a shopping spree and max out all his Islamic cards!!

its subject to case by case, best is to talk to the bank and try to ask for leniency.

afaik last time mbf (no more now) waived off cc debts of my late relatives around 4k.

there is also credit shield program by the banks which will settle all outstanding of the deceased.

Hi just my sharing only

on 2017 my bro pass away and left cc debt but we manage to settle it out

For Citibank = you need to call their CS and they will blocked the card and also stop interest. After that you need to walk in to their hq to appeal for reduce the debt. I manage to waived all interest and only pay the principle amount. Its recommended you bring the letter state that you are the family member of the card holder, willing to pay in full and request for discount. I manage to get waiver of interest plus 1-2k discount since pay in full ( subject to the management i think)

For AEON = AEON is quite tricky as you need to follow up with them bnyak kali. 1st, call them to blocked the card and they will ask you to send email to their CS. later someone from credit card recovery department will contact you and offer some 'discount' to pay in full. Keep in mind that Aeon is a bit unfriendly especially if you ask for any waiver as they keep mention they are not bank.

For Public bank = quite easy. call their CS and later CS will ask for death cert. Also you can ask CS to waiver the interest if any and they will call you back the amount you need to pay

TLDR
Immediately after the decease of card holder, call bank and they will assist you

Hi there, my father passed away recently. Upon calling citibank, they told me to mail them the Letter of Administration then only they will freeze the account. Until then the account remains active and the interest will still be charged. May I know is Letter of Administration really necessary ? I mean we are already in the midst of getting the letter done but it's taking longer than expected. Is that the case for you also ? Thanks in advance.

Weird. My late bro pass away on 2017 and might the bank change the policy. My process simplify like this;

call citibank, inform I as sibling for my late bro. The account freeze in order to freeze the interest
ask them for discount (because I willing to do full settlement) or paymenr scheme
they will ask you to come to citibank hq ( mine like in KL for my case )
you however need to bring letter asking to reduce interest or discount for full settlement
account is settle

You can try to ask different agent, and might get a different answer. Normally this case handle by recovery team