DBS claw back 9 year old loan

[peachy_stardust]

Asking for a friend. He took a loan from DBS in 2010 of $4000 and apparently didn’t repay it and completely forgotten about it. He didn’t receive any letters or calls throughout the years. Today, his current bank account(which is different from the one 9 years back) was frozen and DBS demanded for him to pay the full sum of $11k, which was interest accumulated over the past 8-9 years. If he doesn’t agree to their installment amount, they threatened to deduct the full amount from his account now (3k plus). Sounds ridiculous to me. In the first place it was bank negligence and now just because they flagged the NRIC and that there’s money in the bank, they are in full control. Currently still negotiating the repayment amount but account is still frozen.

Is there anythin he can do about this. Willing to pay the initial amount but 11k is out of the question. Can MAS help?

 

[A Better Tomorrow]

No reminder letters sent? Can fight on this ground for a lesser amount.

 

[Geeezz]

dun think mas can help. tbf it is negligence on both sides, ownself loan money but forgot if u are sure that there isn’t any letter send in between there might be a case for you, but if at dbs, they gt records that they did send letter then gg

 

[peachy_stardust]

dun think mas can help. tbf it is negligence on both sides, ownself loan money but forgot if u are sure that there isn’t any letter send in between there might be a case for you, but if at dbs, they gt records that they did send letter then gg

Even if they did send letter, its arguable that it can be lost in mail.

 

[maple96]

now so high tech, all your products with the bank can be seen via ibanking. He dun have ibanking?

 

[henrylbh]

Asking for a friend. He took a loan from DBS in 2010 of $4000 and apparently didn’t repay it and completely forgotten about it. He didn’t receive any letters or calls throughout the years. Today, his current bank account(which is different from the one 9 years back) was frozen and DBS demanded for him to pay the full sum of $11k, which was interest accumulated over the past 8-9 years. If he doesn’t agree to their installment amount, they threatened to deduct the full amount from his account now (3k plus). Sounds ridiculous to me. In the first place it was bank negligence and now just because they flagged the NRIC and that there’s money in the bank, they are in full control. Currently still negotiating the repayment amount but account is still frozen.

Is there anythin he can do about this. Willing to pay the initial amount but 11k is out of the question. Can MAS help?

When he took the loan, surely he signed to understand that he has a time frame to pay with interest and thereafter further penalty interest, if it continue to remain unpaid. Forgot is no excuse. Can try statute of limitation? Unlikely to succeed

 

[Geeezz]

Even if they did send letter, its arguable that it can be lost in mail.

doesn’t work that way. if a letter is indeed send on their end they hv a more solid case. how can the letters fr the past 9 yrs all lost? that said, if he did not receive any letter in the early years shouldn’t it raise a flag? to me, the bank got more solid case on this, pushing it to the bank fault will only backfire. imo the best way to do this is to negotiate the payment with the bank stating his current situation. most likely the bank will allow it as 11k isn’t really a lot to them. just that his credit score very likely will be affected which will make it harder to apply fr future loans.

 

[yoongf]

The bank is under no obligation to send reminder to borrower.
Once borrower sign to borrow, and $ was disbursed, nothing else matters. The only defence would be evidence of repayment.

Borrow 4k owe 11k over 8 yrs consider a good deal. Calculate the interest rate is not bad at all.
Actually the credit rating would hv been affected already.

Bank has every right to freeze the account. Hire lawyer fight such case retainer fee easily more than the disputed balance.

 

[intime]

Asking for a friend. He took a loan from DBS in 2010 of $4000 and apparently didn’t repay it and completely forgotten about it. He didn’t receive any letters or calls throughout the years. Today, his current bank account(which is different from the one 9 years back) was frozen and DBS demanded for him to pay the full sum of $11k, which was interest accumulated over the past 8-9 years. If he doesn’t agree to their installment amount, they threatened to deduct the full amount from his account now (3k plus). Sounds ridiculous to me. In the first place it was bank negligence and now just because they flagged the NRIC and that there’s money in the bank, they are in full control. Currently still negotiating the repayment amount but account is still frozen.

Is there anythin he can do about this. Willing to pay the initial amount but 11k is out of the question. Can MAS help?

I think it is more of your friend's negligence than the bank. I thought if you borrow someone's money, you should have that reponsibility to return that money. I can't imagine i have to chase after someone whom I lend money to.

 

[BlueRobin]

Man up, face the consequences, learn from this mistakes and move on.

Best chance is go talk to the bank nicely and schedule a repayment regime.

 

[articland05]

lol...take loan forgot to pay.
of course the interest compounded mah.

not bank fault

Sent from LGE LG-H990 using GAGT

 

[iCubes]

Imagine lending your friend money and your friend say if you forget to remind me to pay, then I dont have to pay you back. *roll eyes*

 

[greatpacificpatch]

Some people very entitled one. Everything also need people like secretary to remind them.

 

[mp4005 help]

Asking for a friend. He took a loan from DBS in 2010 of $4000 and apparently didn’t repay it and completely forgotten about it. He didn’t receive any letters or calls throughout the years. Today, his current bank account(which is different from the one 9 years back) was frozen and DBS demanded for him to pay the full sum of $11k, which was interest accumulated over the past 8-9 years. If he doesn’t agree to their installment amount, they threatened to deduct the full amount from his account now (3k plus). Sounds ridiculous to me. In the first place it was bank negligence and now just because they flagged the NRIC and that there’s money in the bank, they are in full control. Currently still negotiating the repayment amount but account is still frozen.

Is there anythin he can do about this. Willing to pay the initial amount but 11k is out of the question. Can MAS help?

go and check/ask a lawyer friend or some law forum - i think there is a moratorium for such things . can't rememer 6 or 7 years .. https://sso.agc.gov.sg/Act/LA1959

small money to bank - discuss with them. reach an agreement. compromise abit.

 

[BBCWatcher]

go and check/ask a lawyer friend or some law forum - i think there is a moratorium for such things . can't rememer 6 or 7 years .. https://sso.agc.gov.sg/Act/LA1959

small money to bank - discuss with them. reach an agreement. compromise abit.

The statute of limitations on debt is 6 years. After 6 years of no contact, a debt can no longer be legally collected in Singapore.

Has there been no contact for at least 6 years? If so, you have absolutely no obligation to repay this debt. You can force the bank to unfreeze the funds and get every penny back. That's unfortunate for the bank, and the bank might not like that, but "tough luck." Granted, the bank is under no obligation to do business with you if you should win, but that's OK. There are plenty of other banks.

 

[lifeislonggamma]

The statute of limitations on debt is 6 years. After 6 years of no contact, a debt can no longer be legally collected in Singapore.

Has there been no contact for at least 6 years? If so, you have absolutely no obligation to repay this debt. You can force the bank to unfreeze the funds and get every penny back. That's unfortunate for the bank, and the bank might not like that, but "tough luck." Granted, the bank is under no obligation to do business with you if you should win, but that's OK. There are plenty of other banks.

Based on the case law relating to Section 6 of the Limitations Act, the 6 years clock only starts running from the date of first demand for payment, as far as commercial loans (as opposed to friendly loans) are concerned.

 

[polyglob]

The statute of limitations on debt is 6 years. After 6 years of no contact, a debt can no longer be legally collected in Singapore.

Has there been no contact for at least 6 years? If so, you have absolutely no obligation to repay this debt. You can force the bank to unfreeze the funds and get every penny back. That's unfortunate for the bank, and the bank might not like that, but "tough luck." Granted, the bank is under no obligation to do business with you if you should win, but that's OK. There are plenty of other banks.

Does it work the other way? I opened a bank account and forgot all about it. After 20 years I found the passbook and visited the bank. The bank tells me tough luck because I haven't shown up all this time.

I do know of one real life case where the bank kept deducting annual service charge from the account until money's about to run out (it was a small amount to begin with), then the bank closed the account with a letter and a cheque for the balance.

 

[Ilovemathstutor]

Asking for a friend. He took a loan from DBS in 2010 of $4000 and apparently didn’t repay it and completely forgotten about it. He didn’t receive any letters or calls throughout the years. Today, his current bank account(which is different from the one 9 years back) was frozen and DBS demanded for him to pay the full sum of $11k, which was interest accumulated over the past 8-9 years. If he doesn’t agree to their installment amount, they threatened to deduct the full amount from his account now (3k plus). Sounds ridiculous to me. In the first place it was bank negligence and now just because they flagged the NRIC and that there’s money in the bank, they are in full control. Currently still negotiating the repayment amount but account is still frozen.

Is there anythin he can do about this. Willing to pay the initial amount but 11k is out of the question. Can MAS help?

haha, what a joke.

1. what a convenient excuse to suddenly forget about a loan?

2. want to repay the initial amount after so many years?
then what about the inflation value per year?

3. asking for a friend or is that person you?

defaulters cause banks to charge a higher pricing on all the other good customers.

"serve you right", pls help me relay this to the person who asked you.

 

[RMCWMR]

Asking for a friend. He took a loan from DBS in 2010 of $4000 and apparently didn’t repay it and completely forgotten about it. He didn’t receive any letters or calls throughout the years. Today, his current bank account(which is different from the one 9 years back) was frozen and DBS demanded for him to pay the full sum of $11k, which was interest accumulated over the past 8-9 years. If he doesn’t agree to their installment amount, they threatened to deduct the full amount from his account now (3k plus). Sounds ridiculous to me. In the first place it was bank negligence and now just because they flagged the NRIC and that there’s money in the bank, they are in full control. Currently still negotiating the repayment amount but account is still frozen.

Is there anythin he can do about this. Willing to pay the initial amount but 11k is out of the question. Can MAS help?

Nothing you can do about it. You cannot take a loan and conveniently forget about it. Otherwise everybody can just "forget about the loan" and then no need repay? I don't buy the BS that bank never chase. Confirm sent letters, reminders, etc but your friend ignore. And when your friend sign the loan agreement confirm there is a clause saying the bank reserves the right to offset the amount from his/her account.

 

[RMCWMR]

The statute of limitations on debt is 6 years. After 6 years of no contact, a debt can no longer be legally collected in Singapore.

Has there been no contact for at least 6 years? If so, you have absolutely no obligation to repay this debt. You can force the bank to unfreeze the funds and get every penny back. That's unfortunate for the bank, and the bank might not like that, but "tough luck." Granted, the bank is under no obligation to do business with you if you should win, but that's OK. There are plenty of other banks.

Banks will never forget to collect back. I'm sure numerous letters and reminders have been sent but was conveniently "forgotten" by TS or "his friend". Imagine if that was a precedent where people can take millions of dollars of loan and conveniently claim they forgot about it despite numerous reminders. I want to "forget" about my housing loan too.