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The Credit Card Debt Forgiveness Letter is a crucial document used in the Malaysian financial sector when a credit card issuer agrees to forgive or write off a portion or all of a cardholder's outstanding debt. This document is typically employed in situations where the cardholder has demonstrated genuine financial hardship, during debt restructuring programs, or as part of larger debt settlement initiatives. Operating within Malaysia's dual banking system, the letter must comply with both conventional banking regulations (Financial Services Act 2013) and, where applicable, Islamic banking principles (Islamic Financial Services Act 2013). The document serves multiple purposes: it formally documents the debt forgiveness agreement, protects both parties' interests, ensures regulatory compliance, and provides clear terms for tax and credit reporting purposes. It's particularly relevant during economic downturns or when financial institutions implement debt relief programs.

1. Letter Header: Include date, recipient's name and address, and reference number

2. Subject Line: Clear indication that this is a Credit Card Debt Forgiveness Letter with relevant account numbers

3. Opening Statement: Formal acknowledgment of the debt and reference to prior communications if any

4. Debt Information: Detailed breakdown of the original debt amount, accumulated interest, and current total

5. Forgiveness Terms: Clear statement of the amount being forgiven and any remaining balance

6. Conditions: Any requirements that must be met for the forgiveness to take effect

7. Tax Implications: Statement regarding potential tax implications of the debt forgiveness

8. Release Statement: Formal statement releasing the debtor from the specified obligations

9. Closing Statement: Next steps and contact information for any questions

10. Signature Block: Authorized signatory details and space for signature