The Associations of Banks in Malaysia (ABM) has endeavoured to address the Consumers Association of Penang’s (CAP) concerns regarding Malaysia’s cyber security but unfortunately have left many queries unanswered. CAP believes it is necessary that we spell out our concerns clearly and in detail once more, so that they may be addressed appropriately; and we hope that relevant parties are able to explain things in a plain manner.
We would much appreciate it if those in charge could explain to us very specifically, what new measures will banks take to ensure our cyber security is iron clad. After all, vague explanations accompanied by declarations of repeating the same old security measures to combat new threats do not exactly incite consumer confidence.
Banks should be stopped from taking unfair advantage of borrowers with personal loans or fixed rate hire-purchase loans (of either the conventional or Islamic financing variety. )
These borrowers lose twice over because interest on the loans are calculated on a flat rate basis and rebates are calculated based on the Rule of 78.
The flat rate method charges interest on money which has already been repaid whilst the Rule of 78 penalizes those who repay early.
The issue of the Latin American gang that hacked into some of Malaysia’s ATM’s (automated teller machines) and absconded with a little over RM 3 million is both frightening and eye-opening. It should be an indication to us that our cyber security is grossly lacking and perhaps our money and personal information are not as safe as we once thought them to be.
We refer to the Global University of Islamic Finance (Inceif) accusation that CAP’s claim that Islamic personal loans offered by banks are a rip-off is baseless. On 16th December 2013, CAP had made a press statement that a loan with an effective profit rate of 42% was a rip-off.
Believe it or not, a bank loan can turn out to be more expensive than a loan from a moneylender. For one bank the profit rate for its ‘Islamic’ personal loan can be as high as 42% per annum. The profit rate, like the interest rate, ensures profits for the bank on a loan extended to the public. Bank Negara should not condone this ‘Ah Long’-like profit rate.