No....it's exploiting the loop hole of banks by declaring their business wrongly to obtain the merchant terminal.
For instance, they will declare the service they provide as water dispensary company (example).
So to the bank, they thought they are dealing with a legitimate company selling water dispensary, but in actual fact the company is not doing that business.
So you figure out whether or not that is legal.

January 25, 2007 21:05 PM   

8.8 Million Credit Card Holders In M'sia

KUALA TERENGGANU, Jan 25 (Bernama) -- There are about 8.8 million credit card holders in Malaysia and most are living beyond their means, charging a total of RM19.3 billion of their spending to various financial institutions.

Credit Counselling and Management Agency chairman Datuk L. Meyyappan who revealed this, however, said the amount was considered small as it made up only 6.2 per cent of total debts to financial institutions with the most being housing loans at RM312.2 billion.

"On the average, Malaysians have three credit cards each. But overall, they are disciplined pay masters compared to those in other countries.

"In fact, unpaid debts involving credit cards amount to only 3.4 per cent or RM670 million of the total outstanding," he told reporters after officiating the agency's office here at Bank Negara Malaysia's Terengganu branch, Thursday.

Also present was the agency's chief executive officer Mohamed Akwal Sultan.

Meyyappan said that about 60 per cent of credit card holders in Malaysia paid the full amount of their debts every month, while the remaining only settled the minimum amount.

He also said that since its inception last April, the agency had helped 1,500 debtors from the 11,000 people who opted for its free services to help them in their financial problems.

According to the agency's statistics, 51 per cent of those who sought the agency's help did so because of credit card payment problems.

"Many of them borrow as a result of a lavish lifestyle. Our credit management programme has helped them to merge their debts and restructure their loan payments.

"This programme helps to ease their financial burdens, giving them the capability to make payments while living a normal life," he said.

Meyyappan said that the main objective in the setting up of the agency by Bank Negara nationwide was to ensure that all households managed their finances prudently apart from providing consultancy services in credit and financial management.

Apart from Kuala Terengganu, the agency has four other branches in Kuala Lumpur, Penang, Kota Kinabalu and Kuching.

Except for Kuala Lumpur where its branch office is located at the Maju Junction Mall in Jalan Sultan Ismail, the others are located within Bank Negara's barches.

-- BERNAMA

http://forum.lowyat.net/topic/797942

http://www.bernama.com/bernama/v3/news.php?id=243395&vo=122

so is this news "BETUL" if yes then this EEP is valid?

wow i didnt know such trick exist! so wats the best way to pay off cc debt? thru personal loan?

The best way is still use what you can afford.
End of story!

think again.....if this is really a trick, who got the benefit most????.............think please think![/size]!

i think the person who benefits the most is YOU.....

@cms.malaysia
You should be lucky that your company's merchant is not being closed down yet.
FYI, the banks had taken action against many of this company.
Also, pls listed down what merchant terminal your company has. I'll bet you only have local bank's merchant terminal.

you are wrong again........for your information, we have almost 13 banks all over local and international......HSBC, OUB, SCB are those International Bank's which under our panel too.....kindly take note

IMO, there are banks out there that offer Balance Transfer with low interest rate also instead of using the services as provided. Moreover, bank like RHB is offering interest rate base on reducing balance basis instead of fixed rate. It is always better to check out all banks rates before resorting to other services. Worse of all, just seek AKPK help as they have the authority to restructure your debts. Most of all as mention, spend within your means is still the best solution problems.

boon,
u r very straight forward guy.... i understand what u trying to say which is illegal and not the right way

cms malaysia
i'm not supporting u but it's a good "program"...

actually bank knows it is illegal to have this machine and swipe for cash, banks are clamping down cos my gf is an account manager for merchant dept in a bank... better be careful bro...but she say paling teruk also terminate lah...bank won't sue the merchant...heheheh

cms.malaysia,
Please mind your font size, it might irritating to others, you might get warn because of this. Thank you for the cooperation.

All,
The scheme is indeed exploiting the loop hole of CC.

hey guys,

There is a Balanace Transfer Program from HLB with 0.5% for 6 months with Reducing Balance. If you have HLB CC, just call the Customer Service Officer and give them your X CC No. which you have the outstanding debt. They will arrange for you right away without any docs.

It is a good try product if you really need it. 

You may want to check out some other banks besides HLB such as:

                          1. HLB
                          2. RHB
                          3. MBB
                          4. HSBC
                          5. etc

I guess this HLB Bal. Transfer is kind of good offer to those CC holders who intend to reduce their debts. There is no imposed of any admin processing fee.

                          0.5% x 6-month = 3.0% (yet is at the reducing bal./mth

I think bank has come out this plan to block away all these CCRF (cr. card refinancing) activities.

thanks for sharing.....eventually BT program intro by Bank was way many years back ago......yes, you are right and BT sometime can save your interest provided your bank card have sufficient limit for BT.......simple scenario.....if the user (HLB Card Holder) limit of 10k and total outstanding already 8000.....remaining balance only 2k......what make you thing BT will actually help alot??? but with EPP, the user can really feel relief....why, please read the above posting about the calculation.

every program there is an pros and cons obviously.......why HLB only offer 0.5% pm for only 6 months and not for 24month?????? let think again!!

browse below link for more info:-

Credit Card Restructuringhttp://forum.lowyat.net/topic/792689

hope the program really help!!

cheers
cms.malaysia
shawn chan