The protest only lasted for about 10 minutes and came to a halt after AmBank officials called the family members in to negotiate an amicable solution to the problems the family faced in financing their housing loan.
D Komagan, the 49-year-old head of the household, was diagnosed with chronic kidney disease in 2023. Treatment costs have heavily burdened the family while Komagan was unable to continue his previous job as a bus driver.
His wife, P Rany, 46, is now the sole breadwinner of the family, working as a factory operator who only earns RM1,400 a month.
Speaking on behalf of the family, PSM central committee member R Karthiges said their housing loan totals RM908 a month, while Komagan’s medical treatment costs nearly RM900 each month.
“They have three school-going children. Komagan goes for dialysis three times a week and cannot afford to pay off the loan. Only his wife is working and she has to financially support the family on her own,” he told reporters.
The family stopped making loan repayments in October last year as they simply did not have the funds, and received a notice of default from AmBank in January.
They said they contacted the bank but were told that they would need to repay the loan despite their financial hardship.
The family then reached out to PSM for guidance and were advised to claim their Mortgage Reducing Term Assurance (MRTA) policy.
“After the family reached out to the bank, they responded by asking, ‘Who told you (about the MRTA policy)?’ It was only after PSM got involved that they finally provided the necessary forms,” said Karthiges.
“Then, they requested medical reports, which we promptly submitted. Weeks later, they came back asking for even more documents and we submitted them.”
Despite their efforts, the family received a notice that their house would be auctioned off next week.
Following negotiations today, AmBank agreed to issue a formal letter within two days to halt the auction, after which the family will make an upfront payment of RM1,000. The family is seeking to raise the amount with PSM’s help.
The bank will then restructure the housing loan after the MRTA is approved, allowing the family to pay a reduced monthly instalment of about RM400 to RM500, compared with RM908 previously.
Karthiges said the decision was amicable, but the situation exposed flaws in the banking system’s communication on the MRTA.
“Too many families are unaware of their MRTA entitlements. Frontline officers are either uninformed or fail to explain these policies accurately,” he said.
He said banks had a moral and social responsibility, particularly in cases involving life-threatening illnesses and financial hardship.
“Housing is a basic right. Where will their children go if their home is taken away? We urge all banks in Malaysia to reconsider auction actions and instead explore humane alternatives, such as loan restructuring,” he said.