Those caught in illicit vehicle deals face criminal, civil penalties

 

KUALA LUMPUR: Repossessors caught selling their repossessed vehicles will face punitive action, which includes having their licence revoked.

Domestic Trade and Cost of Living Ministry enforcement (operations) deputy director Shamsul Nizam Khalil said licensed repossessors were monitored under the Hire Purchase Act 1967 and the Hire-Purchase Regulations (PPDTSB) 2011. Up to June, there are 1,786 permit holders. It is issued solely to individuals.

"According to Rule 9 of PPDTSB, should enforcers believe that a repossessor is engaging in activities that violate the act or regulation, or any written law or permit conditions, they could withdraw, cancel or suspend the repossessor's licence.

"Agents aggrieved by the revocation, cancellation or suspension of their licence may appeal in writing to the minister within 14 days," he said, adding that so far, 60 permits had been revoked since the regulation was implemented in 2011.

Shamsul said the ministry was well aware of the existence of syndicates selling repossessed vehicles and the involvement of secret societies in offering protection stickers for the use of those vehicles.

However, he said the matter was under police jurisdiction and the ministry was working with them to curb the menace.

Shamsul said prior to the issuance of new or renewal of repossession licence, KPDN would submit the names of the applicants to the police for screening.

"A licence will not be granted to those with a criminal record.

"The police have given the assurance that they will not compromise on individuals even if they have records for minor offences.."

Shamsul also warned loan defaulters against selling their outstanding vehicles as they could face a fine of up to RM30,000 or a maximum of three years' imprisonment, or both upon conviction.

The Association of Hire Purchase Companies Malaysia (AHPCM) said loan defaulters who sold their unpaid cars could be subjected to civil action.

"The banks can claim all the losses they suffered from all parties in such transactions. It could be a criminal case if the police can tie the transaction to the owner.

"If the police instituted action against the owner for fraud and forgery, then the buyer can be charged as an accomplice.

"It carries criminal punishment…So if people think that it is so easy to buy a car at such cheap price, our advice is, it is not so easy," said the association, which comprised 17 banks and credit companies.

Commenting on the involvement of auto-towing syndicates, which were making a business selling vehicles with outstanding loans, the association said banks would blacklist underperforming vehicle repossessors involved in the black market.

"The banks also have key performance indicators. If we issue repossession notice to our repossessors, they have to come back with the cars.

"For non-performing repossessors who never come back with the cars, we will cut them off from our business."

The association, however, said it had received complaints from repossessors, who said they were afraid of recovering vehicles with protection stickers.

Some even had to return the vehicles to the syndicates after receiving "threatening calls".

"I have handled this sort of case, where the repossessors have already taken the car, but they had to return it back.

"The owner lodged a report saying that his car was taken by the repossessor, and the agent got arrested by the police.

"When we investigated the case, we found out that the repossessor actually returned the car to this so-called (new) buyer after he received 'calls' (from syndicates)."

The AHPCM said the selling of cars with outstanding loans initially evolved from cases of loan defaulters illegally selling their cars to other people, who would continue to service the loans — a practice known as sambung bayar.

The association said banks would continue to pursue outstanding loan vehicles and might even monitor those who altered the licence plates in the Financial Information Services Sdn Bhd system.

"Before this, it was just sambung bayar cases and it was very rampant. The ministry came to us to discuss how to resolve this.

"We need assistance from other parties as well. One could be the Counseling and Credit Management Agency," the association said, adding that loan defaulters could discuss with their banks if they faced trouble in servicing their loans. focus@nst.com.my

- NST