Debt Collection Agencies in Malaysia

Lately, I’ve been receiving numerous letters from one company by the name of Ztrade Sdn Bhd (note: name has been changed). The letters were addressed to one Nian Aik Sdn Bhd and one Chua Choo Lam, both whose address is almost similar to my current address.
Prior to this, I’ve received one letter from the Registrar of Companies regarding Nian Aik Sdn Bhd. I’ve no idea who or what Nian Aik Sdn Bhd and Chua Choo Lam are and as such, I’ve written to the Registrar of Companies explaining that I’ve no idea who these people are.
So, since I’ve been receiving letters addressing to Nian Aik Sdn Bhd, I decided to look at its contents to see whether this Nian Aik Sdn Bhd is causing further problems.


It seems that Nian Aik Sdn Bhd owes Telekom Malaysia (National Telco) RM721.24 of unpaid bills. And this Ztrade is demanding the unpaid sum on behalf of Telekom Malaysia. Ztrade is a debt collecting agency!

I didn’t know that our National telco would deploy debt collection agencies to collect their outstanding bills. However, it’s not practical to get a lawyer to initiate action against such defaulters as the sum owned is too small. If legal proceedings were initiated to recover a sum of RM700, the costs of doing so would definitely be few fold of the sum owned. Therefore it is wiser to do by way of a debt collecting agency.
This Ztrade has been sending numerous letters reminding Nian Aik Sdn Bhd of their outstanding bills.

Now Ztrade has even sent me one letter informing Nian Aik Sdn Bhd that they will pay us a visit!! This is definitely a scare tactic to make debtors worry that debt collectors will step into their house to demand for money.
To my knowledge, such tactic over a small outstanding amount is not a norm in Malaysia. Nevertheless, this is a civilised method of collecting a debt. I’ve heard stories where companies hired thugs or gangsters to collect debts for them. These thugs would harass debtors with all sorts of method. Recently, I heard one thug poured paint on one debtor’s family pet. LOL The poor dog had to be shaved!

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15 thoughts on “Debt Collection Agencies in Malaysia

  1. avatarbimbobum

    me 1st!
    in this circumstances, ehehe, some people like to make police reports just to say that they have no relation to the company or person and the letters have been wrongfully sent to them.
    everything also police report, not to say it makes sense in this type of situations. ehehehe

    Reply
  2. avatarjulz

    Reminds me of all the letters we receive in our current house. Previous tenant decided to run away without paying telephone and credit card bills and those warning letters still keeps coming in.It’s postbox spam!

    Reply
  3. avatarAmos

    Actually all this debt collectors are very irritating, there’s one time i owe celcom RM120++ and didn’t paid them for like 2 months, then they start calling me, my home and stuf and say they would send lawyer letters and stuff….Once I paid and they called me again, and that was the time i start shouting at them without giving faces as they are disturbing my PEACE!!!

    Reply
  4. avatarkarheng

    Actually, this is a common thing in Malaysia. Telekom normally sends one red note it pretty much solves everything. I don’t know how long this needs to be sent such letters. TMTouch used debt collecting agencies before to send letters such as this.

    Reply
  5. avataroldman

    I do not blame the telecoms companies. Their bad debts – mainly less than RM1,000 per account and are made up of hundred of thousands of subscribers – already run into hundred of millions. Do you know that globally, USD 40 billion is being written off by telcos. And it is a normal practice for telcos, internationally, to engage Debts Collection Agencies to take care of their bad debts. It is fair that we as consumers pay our dues, for facilities that we have used… what say you?

    Reply
  6. avatartenant

    actually i not so agree with the writter comments…
    1st, if we NOT the addressee, we can just ‘re-direct’ / return the letter to the sender. i always do like that becoz i also leave in a rental house.
    2nd, actually the writer can’t open any letter which not attend him/her, although the letter is colourful. In Law, he/she do not have any authority to do that or give such comment to the sender…. That action like ‘keh poh’.
    my sugestion: if u accidently open the letter, u can call the agency & tell them that u not the addressee and ask them to stop sending letter to ur house. i think this is the wiser & best way to solve the writter problem.

    Reply
  7. avatarALan

    Well the problem is when they have the wrong being handed over to the debt collectors.

    Never have a debt in me account especially for TM and yet the debt agencies keep calling me to pay up for the amount of 600 or they are going to bring it to court.

    The cost of the debtor collection will be born by the person implicated as debtor and most of the time the litigation cost is more than the sum thats being owe ,,

    Imagine going to court and back for the amount of 600 ringgit and the procedding of the court will take more than 6 years to complete?

    Reply

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