Regulating The Process Of Vehicle Repossessing In Malaysia

The incident I am talking about happened sometime in the early 1970s. To tell you the truth, I have nearly forgotten about it already. It is not easy to remember something that took place in our lives such a long time ago.

But since it was an important event and one that took place only once in our lifetime, I still remember it albeit very vaguely today.

I remember being in my mid 20s then and recently married. Being inexperienced in many aspect of life, I was very excited to be able to secure a 2nd hand Datsun 1200 from a finance company. I can still remember to this very day the proprietor of the finance company who sold me the apple green Datsun, Mr. Sim.

I can still recall the vehicle costing around RM6500. For your information, the car was a popular model in those days. In fact, I remember paying cash for it. In doing so, I received a receipt for it. The proprietor of the finance company informed me that the Registration Card and other insurance particulars of the vehicle would require some time to be handed to me.

As a young man and inexperienced involving things pertaining to vehicle purchased and R.I.M.V. particulars then, I believed what Mr. Sim said. Hardly 2 days after driving the Datsun 1200 around town, a frightening event befelled me. I was confronted by a group of thuggish looking men claiming to be repossessing agents.

Taking hold of a few personal belongings, I was left standing by the road side wondering in amazement what in the world was happening. As a matter of fact, and to tell you the truth, I had never envisaged such a thing ever happening in my life. After all, I did not steal the vehicle. I got it legally as far as I was concerned. It was paid in cash as I told you and I owed no money or installment for the car which I purchased.

Walking back and reaching home eventually, sweating away profusely, I immediately called my elder brother. My brother was at that time working in Kuala Lumpur. My brother was attached to a well known law firm in Kuala Lumpur, Zain and Company.

My brother advised me to lodge a police report regarding the repossession of my vehicle immediately and to keep him informed of the matter.

Upon making a police report at the local police station, surprisingly, the sergeant directed me upstairs to the commercial crime department instead. The officer, whose name I have since forgotten, seemed to be well aware of the incident.

It seems the repossesors had all the necessary papers and they have taken my vehicle legally. The repossessors had even made a police report to the police station after they had forcefully relieved me of my vehicle.

To cut the long story short, it appeared that the car selling agent, Mr. Sim, had owed another finance company outstanding installments on the Datsun 1200 vehicle which I bought.

Upon informing the officer in charge of my intention to seek legal redress, I was surprisingly advised by him to settle the matter amicably. The repossessor and finance company finally agreed to reimburse me a paltry sum of RM100 for inconvenience caused and to pay for a medical leave certificate which I had to obtain that day from a private doctor. You see, the repossession of my vehicle had resulted me not being able to go to work that day.

Upon reading an interesting article in the Star newspaper dated 28th September 2010, a new law will soon be tabled in Parliament to regulate vehicle repossession. I ws rather glad that finally such a move has been taken. In fact, it was long overdue.

Domestic Trade, Cooperative Affairs and Consumerism Ministry Minister Datuk Rohani Abdul Karim said in Miri, her ministry is presently in the process of drafting out a new law soon relating to matters pertaining to the collection of installment payments and the repossession of vehicles.

Furthermore, Datuk Rohani reiterated, the government has to step in and regulate the business as rough tactics were becoming the trend of the day. Many financial institutions use the services of third parties to collect outstanding installments and repossess vehicles.

Some third parties use scare tactics and gangster and there have been many complaints about it. Such methods cannot be allowed to continue.

The new law will in future require all third parties involved in vehicle repossession and collection of outstanding installment to be licensed. Only professional trained people governed by a code of ethics will be in future be allowed to carry out such duties. According to Datuk Rohani, the draft of the new law will be tabled at the next sitting of the Dewan Rakyat.

When asked how severe gangster tactics are being adopted currently, the Minister said there was no proper data, but based upon public complaints and feedback, she said it was believed to be quite widespread in cities and towns all across the country.

Members of the public and I are anxiously awaiting the new law on collection of installments and the repossession of vehicle by finance companies and banks. To the government and relevant ministry involved, the public appreciates the effort that you have taken.

By | 2012-09-21T20:29:28+08:00 November 4th, 2010|Driving In Malaysia|4 Comments

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  1. Chester November 6, 2010 at 10:16 pm - Reply

    Im abt to sell my car to a person and it’s in the midst of applying loan to finance the car. What should i do next? There are few questions here:

    -Normally who should pay for all the fees from inspection till the transfer of ownership?
    -Who should arrange for the transfer of ownership?

    Pls guide me throughly step-by-step what to do. Your help will be highly appreciated.

  2. Michael May 19, 2011 at 6:33 am - Reply

    Malaysia is one the few countries in Asia where people feel they can violate the law and yet claim to be victims. This and many other reasons is simply why Malaysia can never achieve the status of a developed nation. Defaulting on a loan is a very serious offense that should not be encouraged by irresponsible laws that bind the hands of vehicle dealers, and repossession companies.

    Imagine a situation of what 3 million loan defaulters will do to any bank’s ability to give future loans to worthy customers who deserve to be given a loan just because of the irresponsible behavior of the 3 million defaulters.

    The global financial crisis is a stark reminder of the ramifications of the domino effect of how loan defaulters can wreck havoc to any economy.

    Politicians on their part need to be more responsible and stop cat and mouse game they play with their electorate by pretending to be protecting them against irresponsible behavior.

    If you take a loan you are required to fulfill your obligations based on the agreement made between the receiver and the loan facilitator. There should be zero tolerance of any kind for defaulters.

    • Cikgu Yap May 22, 2011 at 8:25 am - Reply

      Your opinion is indeed correct. Irresponsible loaners will prevent other loaners the opportunity to get a loan, especially from banks and other financial companies.

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