What is AKPK? How can AKPK’s Debt Management Programme (DMP) or Program Pengurusan Kredit help you? What are the pros and cons of AKPK? What is the process to apply and register for AKPK?
Updated: Sep 1, 2022
What is AKPK?
- Agensi Kaunseling dan Pengurusan Kredit or The Credit Counselling and Debt Management Agency.
- Setup by Bank Negara Malaysia (BNM central bank) in April 2006 (as a wholly owned subsidiary).
- Objective to help individuals take control of their financial situation and gain peace of mind from wise use of credit.
AKPK Focus
- Financial Education
- Financial Counseling
- Debt Management Programme
What is AKPK’s Debt Management Programme (DMP)?
The Debt Management Programme assists individuals to regain financial control. This is done by working with AKPK counsellors to develop a personalised debt repayment plan in consultation with your financial service providers. We know that today’s world of easy access to credit, credit cards, and installment purchase plans make it so easy to fall into debt! How does AKPK’s Debt Management Program work?
Debt Management Programme Advantages
- Lower interest rate charges i.e. fixed 8% (compared to high rates charged on personal/credit card/unsecured loans).
- Single debt to service instead of multiple debts with different payment timelines and charges.
- No fees charged for AKPK’s services.
- Cash flow realignment.
- Reasonable payment terms based on available cash flow.
- Avoid harassment from debt collectors.
- Financial institutions suspends any legal action as long as DMP payments made promptly every month (legal proceedings moratorium).
Debt Management Programme Disadvantages
- The principal amount is not reduced. Only the interest and payment duration is changed.
- CCRIS report states that you are under AKPK DMP.
- Credit lines (credit card, overdraft, etc) withdrawn.
- May not obtain new credit while remaining in DMP and subject to financial service provider’s discretion.
- Only one time help offered. Basically if you screw up your DMP repayments, AKPK is no longer able to assist you.
Programme Criteria
- Individual / consumer loans below RM5m
- Not bankrupt
- Positive net income (employed or business owner)
- Not under advanced legal action
- Loan from participating financial service providers
Loans Restructuring under DMP
- Personal loans through salary deduction (BKRM, MBSB, BSN)
- Hire-purchase (Bank Islam, AmBank, others on case-by-case basis)
- Housing loans (AmBank, Bank Islam,PBBank, RHB, CIMB, BSN, Affin Bank, others on case-by-case basis)
- PTPTN (provided other loans restructured together under DMP)
AKPK Debt Management Programme Registration Process
- Register online at AKPK customer portal (NRIC, mobile, personal particulars).
- Fill up programme application including income, expenses, debts).
- Review draft and submit.
- Set appointment to meet AKPK counsellor (brining along relevant documents).
Participating Financial Service Providers
- Commercial Banks
- Islamic Banks
- Life Insurers
- Takaful Operators
- Development Financial Institutions
- Credit/Charge Card Issuers
- MBSB
- Koperasi Bank Persatuan
- Koperasi Operasi Ukhwah Malaysia
- PTPTN
Relevant Documents
- CCRIS report
- NRIC copy
- Latest salary slip (3 months) / evidence of income
- EPF statement
- Credit card and loan statements
- Latest income tax statement
- Legal proceeding documents (if any)
Should You Consider AKPK Debt Management Programme?
Consider where you are both in terms of you debt and your ability to meet your monthly debt repayments.
Work with a trusted personal finances savvy friend or financial planner to help you review your financial situation and options which may include AKPK or other options.
Consider options and strategies including balance transfers, clearing by interest charged (highest to lowest), or debt amount (smallest to largest).
Weigh the pros and cons of the AKPK program, and if you do take up the debt management program you MUST follow through with it diligently. Debt repayment amounts start off smaller but will increase over time.
Overall the AKPK DMP can help ease your loan repayment burden and reduce your financial stress levels. Especially if you are facing imminent legal action, it may be good to explore this option for peace of mind.
More Info
AKPK FAQ
Q: Can I keep 1 credit card day for emergency purposes?
Unfortunately no. You must cancel all your credit cards.
Q: Does AKPK provide loans?
A: No AKPK does not provide credit facilities. You may liaise directly with banks/financial institutions.
Q: Will this affect my job application?
Not directly. You may need to inform your employer if any AKPK restrictions applied to you affect your work or employer in any way.
Q: Will my employer be informed if I enrol in DMP?
A: No AKPK does not inform your employer.
Q: Will my bank still contact me after enrolling in DMP?
A: Yes the bank can still contact you but cannot take any legal action as long as you meet DMP payments promptly every month.
Q: Am I blacklisted from traveling after enrolling in DMP?
No travel restrictions.
How to check the balance amount & balance of year need t be settle
Will akpk dmp status still show on ccris after repayment completed?
hi, as u say dmp status is in 12mth. so if i settle now means dmp status will follow me for 12 mth
can i still use my credit card?
Will bank still impose finance charges after enroll to DMP?
If I would like to clear one of my credit card debt that is under the DMP in order to lower the monthly DMP. Is that possible?
Interest Rate is 8%.
Or can I negotiate for lower interest rate?
Can I buy a house and apply for housing loan if I am still under DMP?
Hi, I have an old credit card debt amounting to 29k. The principle amount was 16k from 2017 (last payment made in 2017). I have been contacted by a debt collector agency lately and been offered a settlement amount. What due diligence should I be doing to make sure this is a legitimate offer against that credit card debt, and are there any red flags I should be looking out for? I am looking to clear this debt and what if any are my options and consequences of them? Thank you
Thank you for the prompt reply. Is there any request I can/should be able to make as part of the settlement – specifically surrounding how the debt is registered to have been settled? Had read some advise on the difference between in full Vs partial Vs not at all – or this irrelevant due to the duration of my outstanding debt and any impact on my credit score?
I would like to apply for AKPK. After I complete AKPK DMP all payment, Can I get housing loan or car loan from other bank?
can i still open investment account such as public mutual investment or bond investment once i am under DMP?
Hi, thanks for sharing.
How long the process takes to enroll AKPK’s debt management program?
Thanks and Regards
Hi,
After I paid for AKPK DMP, my plan is 10 years DMP plan,
If I able to repay the credit card principal amount in 1 year, will the calculated fixed interest in AKPK will be reduce?
hello, may i know do I have to get the approval from AKPK first to sell my house/prop if im still under AKPK?
Hi if i skip a month payment will my DMP will be terminated?
Hi, May I Know possible we withdraw EPF account 2 to settle AKPK?
Hi thanks for your info sharing.
Will AKPK DMP affect any pre-employment screening or check, and disclosure by AKPK will influence the final hiring of candidate?
Thanks.
Hi thank you for your swift reply! :)
May I have a follow-up question please – does it mean that employers will not be able to know whether the candidate is enrolled under DMP, or will they be able to find out?Thanks.
How soon is the process so I can skip paying to banks and pay to AKPK instead?
If I apply now, still I need to clear payment to banks which due this month? TQ.
can I still use my bank account of the bank if I am on DMP payment for my credit card from the same bank?
Hi Sir May i know does Akpk DmP also helps to consolidate other legal non bank credit providers as well ? Eg : IOS SOLUTIONS. SDN BHD OR AEON CREDIT SERVICES..
I completed my akpk dmp and tried to apply credit card. But most of the bank rejected my applications. Is that means I need to wait 12 months until no more status only apply better?
Can i still seek help from APKP for a credit card debt overdue for the past 7 years?