Defaulters

Q&A's

Please don't be upset with MO or GUARDS

After we have sent emails, whatsapp messages and made calls and reminded the defaulters in a kind way to pay MO (=Management Office) not intend to continue with this because we have better things to do. Einstein said: "Expecting better results from doing the same things over and over again is INSANE". That's when MO goes to another level to create better results in collecting from defaulters.

(Hard core) defaulters who ignored MO kind requests to pay will face the following measures:
1. Food delivery stop;
2. Access Car Block;
3. Visitor Block.

This leads often to many arguments and issues. We experience tenants getting upset asking why they are blocked access. We tell them that their landlord not pays the maintenance fees. This leads to landlords getting upset with MO and GUARDS why we create this trouble for their tenants. It looks like somehow these landlords forgot they collected rental monthly but never paid maintenance fees. But when MO reminded them to pay, they failed to pay or connect with MO to create an instalment payment agreement (IPA).

Other upsetting situations happen when friends or inlaws are told at the entrance that they cannot come in the property unless the defaulter comes to pick them up. MO and guards are often being scolded why all this trouble happens and why they face these shameful situations.

We tell them: "Please look in the mirror and who do you see?" Right! It's yourself who created this troublesome situation. You may not like it but it's a fact.

MO never has anything to do with these problematic situations as it is a result of owners ignoring and neglecting many (kind) reminders that have been sent to them without understanding that one day will come that it will not be kind anymore. In the end MO just let the lawyer handle the defaulter if they never cared to cooperate to pay the outstanding.

What is a defaulter?

“A defaulter is a proprietor who has not fully paid the Charges or contribution to the sinking fund in respect of his parcel or any other money imposed by or due and payable to the management corporation under the Act at the expiry of the period of fourteen days of receiving a notice from the management corporation.”

When you are a defaulter?

If you not pay your maintenance fees after 14 days of the moment the maintenance fees per that month are due to be paid then you are considered to be a defaulter. So this does not mean that if you receive an invoice for 3 months that you can make payment at the end of this 3 months.

If you sign up for an instalment payment agreement then you will not face financial negative consequences (we stop your "DEFAULTER STATUS"). As rule of thumb we suggest you start paying 50% of your outstanding debt and the rest in 1o to max 12 instalments. If you can pay an initial higher lump sum payment of RM 2k or more then we may stretch the pay back period from 12 to 18 months.

PLEASE TAKE NOTE:
If you fail to pay one of the instalments without updating the management your payment agreement will be terminated and you go to "DEFAULTER STATUS" again. This means that we will stop food delivery, block access cards, block visitors and have you open the barrier gate your self.

What consequences can the defaulter face?

As a defaulter, the Regulation allows the management to take certain steps against defaulters and this can include family members or anyone who rent the property out to.

>Prepare and display a list of defaulters together with their unit numbers and amount owed;

>Deactivate the access card(s) without prior notice and charge a maximum RM 50.- to reactivate the card;

>Require you to sign in to the building if your card is deactivated (at the guard house, at the parking entrance, at the entrance of the lobby);

>Suspend your use of the common property, facilities etc, including any car park lots that have been assigned to you;

>Stop food delivery etc.

>Restrict visitor entry (you need to pick them up your self)

What the Strata Management Act says about defaulters?

The Strata Management Act also states

"any purchaser or parcel owner who, without reasonable excuse, fails to comply to pay maintenance fees commits an offence under subsection 34(3) of the Act and shall on conviction, be liable to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding three years or to both, and in the case of a continuing offence, to a further fine not exceeding fifty ringgit for every day or part thereof during which the offence continues after conviction."

What action the management takes now to collect maintenance fees?

What action the management can takes to collect maintenance fees?

First we sent invoices and reminders to invite residents to pay. Then we urge defaulters who have outstanding of more than 14 days to pay before to avoid their access card being blocked. We contact owners by e-mail and by whatsapp and make phone calls to remind them to pay the outstanding. For those defaulters who pay we will unblock the access card.

Those defaulters who not pay or not care to contact us we unfortunately will have to proceed with legal actions as for example TRIBUNAL court.

We also enfor other SOP's such as: Stop Food Delivery and Stop Visitor Access (you need to pick up your visitors and open the barrier gate for them.

Most heard reasons for not paying maintenance fees?

Owners who bought a strata property are supposed to understand that monthly maintenance fees are charged and need to be paid in time (within 14 days) to keep the property SAFE, CLEAN and ZERO DEFECT while all facilities are running properly.

To collect maintenance fees the Management Office (MO) team send out quarterly invoices to inform residents to make payments.

For the majority of residents this works fine and these residents settle the charges on time.

For residents who not know how much their current outstanding is there are many ways to find this out:

1. You can contact your MO team or Sharif at 0123665105 and ask what is your outstanding (office hours only 9 am to 5 pm mo to fr and sa 9 am to 1pm );

2. You can send an email to the MO (check with your MO team) and request for an outstanding statement;

3. Send a whatsapp message to the 24/7 support centre: +60 11-3915 4990 (chat only);

4. Visit the Management Office.

Despite these options to find out your outstanding there are still some residents who say:

"I didn't know I have any outstanding because I not received any invoice"

"Nobody called me about my outstanding"

"I did not see the lift notice with the defaulters on it"

Please take note that these statement not rectify that you not pay your maintenance fees as you should know that you need to pay these fees on a monthly basis.

To ensure especially defaulters know their outstanding the MO team now updates them in the following ways:

> whatsapp messages

> phone calls

> emails

> door to door visit

In this way everyone will know in a convenient way how much the outstanding maintenance fees are to be paid for your unit. If you feel the amount not reflects the actual status because you made already payment then we advice you to visit the Management Office and bring your payment proof. We will be happy to update in the account system any payment you made of which you believe it is not yet in the system. Sometimes it happens that residents pay without making reference of the unit number. Because of this the accounts team are unable to allocate the payment to the specific unit. As mentioned a visit to the Management Office can clear this up very effectively.

Can defaulters face legal consequences or even end up in jail?

YES!

What if I cannot pay the amount in one time because it is so high?
What is a Payment Agreement?

If your outstanding is due over 120 days it can add up to a serious high amount. If you owe more than RM 1,000.- we request you pay at least half (50%) of the outstanding amount. If not we will continue to block your access card as well take legal action (TRIBUNAL court and we may file your case to CTOS which will have serious negative consequences for you). Please avoid these inconveniences and get in touch with us (call Sharif: 0123 66 5105) to settle your outstanding. We are here for you and always ready to listen to you and advise you about the options you have to settle the outstanding as convenient as possible for you.

"IPA" UNITS?

Units marked with "IPA" (Intalment Payment Agreement) who signed a payment agreement to clear of the debt and will not face TRIBUNAL or CTOS concequences (if they keep paying back based on the signed agreement)!

How can you create an "Instalment Payment Agreement"?

For outstanding amounts higher than 2K we advice a settlement of 50% of the total outstanding and the rest of the outstanding need to be settled in 10 to max 12 months (unless JMB team gives written clearance for a longer term) together with the normal monthly maintenance fees.

Example:

Monthly maintenance fee is: RM 144.-

Current outstanding is: RM 6,000.-

Payment arrangement:

1. 50% of RM 6,000.- = RM 3,000.-

2. Balance is RM 3,000.- / 10 months = RM 300,-

3. The Outstanding balance need to be cleared together with the monthly RM 144.-

4. This means the total monthly parment agreement will be: RM 300.- + RM 144.- = RM 444.-

AGREEMENT TO SIGN UP AS FOLLOW:

A. Lumb sum payment of: RM 3,000.-

B. 10 monthly payments of RM 300.-

Where to go to sign a payment agreement?

You can contact MO and ask the staff to sign up for a payment agreement. The Instalment Payment Agreement needs to be approved by the JMB or MC committee chairman.

What if I stop pay the instalments of the payment agreement ?

If you stop paying the instalments set in your payment ageement without giving written notice to the management MO terminates your payment agreement. This means that when you miss out an instalment without updating the management your payment agreement is automatically terminated. After this you fall back in the "defaulter category" and you face the consequences that defaulters will face: "bar access cards", "stop food delivery", restrict use of common area, etc etc.

MO advise you NOT TO MISS OUT ON YOUR INSTALMENT OF THE PAYMENT AGREEMENT!!!

We understand that anyone can face financial difficulties. If you keep updating us about it then we may provide you with an "instalment holiday". But don't keep silent without staying in touch with MO as this will ruin your Instalment Payment Agreement immediately.

I have a payment agreement but I not receive food delivery anymore?

Defaulter Instalment Payment Agreements that are not followed up with payments are terminated. Because of this you will go defaulter status again!

Please continue to pay your monthly instalment plan because if you miss one payment (without updating the MO) your plan will be terminated.

How about the payment after I sign a payment agreement? When I need to pay?

The moment you sign up for an Instalment Payment Agreement we expect you to pay the same or latest next day. Too many people told us they will pay and come to sign a payment agreement just to get their access cards being unblocked. This means they actually never intend to pay any fees at all. We not entertain that anymore so that's why if you sign up for a payment agreement you must pay the first instalment the same day or latest next day. If not your agreement is terminated again and access cards will be blocked etc etc.

How can I make payment?

HOW TO PAY?

Please check with your MO for more details or whatsapp our 24/7 support desk:

For online payments please practice the following rules:

1. MAKE A PRINT SCREEN OR PHOTO FROM YOUR PAYMENT

2. SEND THIS PROOF (bank slip) OF PAYMENT TO THE MO EMAIL ADDRESS

3. INCLUDE YOUR HOUSE NR / ADDRESS DETAILS

ON LINE PAYMENT REFERENCE:

When you bank in on line please use a correct reference as stated below:

Good examples of references:

B-28-06 or

A-09-13A

Thank you the management.

The management may also work together with CTOS to decrease the defaulters.

CTOS stands for Credit Tip-Off Service, the company itself are categorised as Credit Agency. CTOS provides information system widely used by the majority of the country's Financial Institutions, Commercial Companies & Businesses, Legal Firms and other institutions.

What is CTOS?
CTOS is a private company, and one of Malaysia's leading Credit Reporting Agency (CRA) under the Credit Reporting Agencies Act 2010. They too provide credit reporting and is also widely used by financial institutions to determine an applicant's creditworthiness aside from CCRIS.

Defaulters who ultimately not pay their outstanding maintenance fees after being reminded more than 2 times will ultimately be reported by MO to CTOS. This will have serious consequences for loan approval, credit card amount increase and buying products on instalment basis.

MO therefore advises all Residensi Jalil Mas defaulters to take the reminders sent out serious and to get in touch with MO regarding their outstanding payments to avoid any inconveniences. You can call Sharif for more details: 0123 66 5105

Find out more here

4 Times A Bad Credit Report Can Absolutely Destroy You

Your credit report plays a pivotal role in your financial journey. And as far as reports go, it is one of the most important ones that will be attached to your name.

The scary thing is, you might not even be aware of how much of a mess it could make of your life and your finances, until it is too late!

Here are 4 times a bad credit report can put you in a tight spot and even cost you money in the long run!

1. When you apply for loans

The simple fact of the matter is, in most situations, your credit report is a deciding factor in whether you’ll be approved for a mortgage,car loanor any other types of loan.

The thing with credit report is, it doesn’t just show the lenders your payment history, it also tells them how much credit you have on your name and how much you have used up. If your credit is maxed out, the likelihood of you getting a loan can be slim.

Banks lend you money to make money, hence they only lend to those who can pay them back. If your credit report indicates that you are an unreliable borrower, you might not be able to obtain the credit that you need.

Even if you do get approved for your application, you could be offered a lower margin of finance and/or with higher interest rates that could come up to thousands of Ringgit more over time!

Avoid paying more by improving your credit health, so you can qualify for the best loan terms and rates.

2. When you apply for credit cards

As with any loan, applying for a credit card involves a thorough credit check and this can be challenging if your credit report is less than stellar.

Worse, a failed application will show on your records and this will further hurt your chances of getting approved for another credit card, at least for the next 12 months.

Activities that can hurt your chances of getting approved for that spanking new piece of plastic include frequent late payments for your other cards or loans, and high debt-to-income ratio exceeding 60%.

If you haven’t been on your best financial behaviour, the best thing you can do is to first clean up your credit report before applying for a new credit card.

3. When you apply for a job

Here’s more bad news – a bad credit record can even affect your chances of getting employed!

If you have skeletons in your financial closet – say bankruptcy, delinquencies or a proclivity for racking up huge debts – then applying for a new job can put you in a tricky spot, because an employer can easily find out all about it.

Many companies perform credit checks on potential employees as part of a background check. Some companies also perform checks on employees who are considered for promotions, especially for higher-level positions, so you can’t assume that just because you’ve been hired, your personal information will stay personal.

There are companies who conduct background checks for pre- and post-employment which include financial probity checks. This is especially common with government-linked, public-listed and multinational companies for positions that involve dealing with cash, access to corporate finance and bank accounts, access to client accounts and data, handling financial data, or involvement with financial IT software and systems.

If you have poor credit, the long-term goal should always be to get back in the black. But if you are in urgent need of a job (because how else will you clear off your debts without an income?), you can try applying with smaller companies where the hiring process isn’t standardised or have no professional human resource folks to suggest credit checks.

4. When you’re looking to rent

We already know that having bad credit can make it difficult for you to secure a home loan. But even if you’re just looking to rent, your credit history can still pose problems.

In these trying times, landlords are more concerned than ever about finding a tenant who is going to pay their rent on time, so it is not uncommon for them to vet potential renters.

They will look through your credit history to assess how much of a financial risk you might pose. If you have poor credit health, you might have a tough time securing that rental that you desire. However, this may not be common among small-time residential property owners.

In this situation, a short-term option for you is to pay a more substantial amount of deposit, which can at least guarantee the landlord your tenancy for this period. In the long run, you will need to reassess your finances and work on improving your rating.

How to fix a bad credit report

Just like when your child is running a temperature, you would regularly check his/her temperature to see if he/she is recovering or deteriorating. Similarly, with your credit report, especially if you have a problem in your credit, you should regularly check it to see how well you are doing.

If you are working to build or rebuild credit, it is recommended that you check your credit report once every three months to ensure you are on the right track of recovery. Even if you have no issue with your credit, it pays to ensure your report is up-to-date and accurate by checking it before you apply for a credit facility such as a loan or a credit card, a new job, and it will also help you guard against identity theft and errors.

Checking your credit report is easy and convenient with CTOS. You can access your MyCTOS report to check if there are any red flags in the report that may impact your future credit applications. This can be done online and within three working hours.

The good news is, your credit report shows your credit history for the past 12 months. Hence, if you want to improve your credit rating, the first thing you need to do is to make sure you make all your payments to creditors on time and also pay down your credit for the next 12 months. This includes your bills and debts.

If you’re forced to miss a payment, be sure to inform the creditor and make the payment the following month. If you have outstanding defaults, pay them off as soon as you can.

To avoid glitches in your pursuit to purchase a car or a home, you should obtain your credit report from a credit reporting agency such as CTOS to make sure that everything is up-to-date and in order before you proceed. For instance, if you have paid a debt that was subject of a court judgement, make sure it is reflected on the file.

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