ALOR STAR: The Congress of Unions of Employees in Public and Civil Services (Cuepacs) is urging the government and Bank Negara to intervene and take action against banks which offer personal loan schemes to civil servants, considering their income and financial situation.
Cuepacs president Datuk Azih Muda said it had received complaints that several banks have recently been offering personal loan schemes to civil servants, including retirees, without requiring a payslip and that the banks would approve applicants without taking into consideration their income and financial situation.
Azih said the banks were also reportedly making automatic deductions of over 60 per cent from one's salary or pension.
"With such methods applied by banks, we fear that many civil servants may be misguided by the offer and end up in a stressful situation with a significant loss of income.
"We hope that the government and Bank Negara would intervene and take immediate action in order to save the civil servants from being laden with huge debts," said Azih.
Azih said Cuepacs will also be writing to Bank Negara obtain an explanation on its decision to allow these banks to carry out the scheme.
Azih was speaking after attending the Police Administrative and Civil Servants Union's (PACSU's) 36th biennial conference at the Tabung Haji Hotel and Convention Centre here today. Also present at the event were Inspector-General of Police Tan Sri Khalid Abu Bakar and PACSU president Mahamad Bahrum.