Permits mandatory for all car repossessors from June 1

According to a Bernama report, all car repossessors appointed by banks will have to obtain valid permits. These will be issued by the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK), as provided for under the Hire Purchase Act 1967 (Amendment 2010).

“The permit costs only RM20 for two years and RM20 for renewal for another two years,” said Sarawak KPDNKK director Wan Ahmad Uzir Wan Sulaiman.

Car repossessors need to abide by the regulation and cannot use force against buyers, he said, adding that applicants must be Malaysian citizens over 21 years-old and will be screened by police to ensure that they have never been involved in crimes.

Under the amendment, repossessing will need a court order, if the buyer has paid installments more than 75% of the price of vehicle. Those who fail to comply face a RM25,000 fine or three years’ jail or RM50,000 or five years’ jail for the second offence, the report added.

© 2011 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sat, 07 May 11 05:14:26 +0000.

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