HELP! I have a credit card debt of 25k hkd which balloons to 350k hkd!

[gretta1986]

I have a 25k hkd debt in the year 2009, I must admit I have neglected my responsiblity and stop paying my debt until now. I am sorry for what I have done, things were pretty messed up before. But now, I can say that my life is better with a stable job, so I have come to the point where I want to pay my old debt. I went to transunion and ask l them about my credit record, so I have around 44k hkd credit debt from 3 banks.

I chose Wing Lung bank first as it was the biggest loan I have. I went to the bank to settle my debt last 2 weeks ago, I owe then 25hkd, year 2009. But they said, my record was no longer with them. They will call me once they have an update. I received a call today, telling me I owe them 350k hkd, and that I have to pay them 50k first so we can start negotiating the terms on how I will pay the rest.


I was shock! There is no way I can give them 50k in one go, and 350k hkd even after 10 years is still ridiculous!
I wish to pay in installment basis, as my salary is not that high, I can only pay 2k every month.

1.) I dont know what to do, please help me. Upon reading some of the threads here, there is this "Statute of limitations", how can I use this in my advantage?

2.) How to compute, my total debt ?

3.) How to deal if my record was no longer in my original bank, but in a 3rd party collecting agency? or can I still negotiate with my original bank?

4.) I can only pay 2k a month, would this be possible?

5. ) Can I get a written aggreement with the said bank?
I hope you could spare some of your time...

[shri]

Are you a local, temp expat or here for life?

[gretta1986]

Im a resident here... - here for life..

[SpeakCantonese]

Is there a statute of limitations in Hong Kong?

In my opinion, you need a lawyer...it's a shame you didn't ask for advice before you contacted your bank.

[Tadashi]

file for bankruptcy?

[HK_Katherine]

My "back of the envelope" calculation suggests that this is a compound interest rate of 34%, which is not out of the range of credit card interest rates. ( I just googled HSBC, which was about 20% pa excluding penalties) Particularly since there were probably additional penalties on top for not paying off the minimum etc. I think you basically need to pay it.

[SpeakCantonese]

This thread seems to indicate that the statute of limitations is 6 years...

https://geoexpat.com/forum/54/thread60519.html

As I understand it...that would be six years since the last contact between you and the bank/collection agency.

If I were you, I'd stop communicating with them right now and get a lawyer in.

[gretta1986]

@SpeakCantonese, I believe there is Statute of Limitation here.

I am just an average worker here in HK, Im afraid hiring a lawyer would be my last resort. But for now, I am looking how to handle this on my own, if that is possible.

[gretta1986]

If transunion says I have 44k+ debt in 3 banks, what does it mean? Would this be what I really owe and not 350k hkd from just 1 bank?

[SpeakCantonese]

I am looking how to handle this on my own.

That sounds like a very bad plan to me. But there you are. There are some legal types on these boards who might chime in.