New law soon to regulate vehicle repossession, says ministry

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New law soon to regulate vehicle repossession, says ministry

Postby admin » Tue Sep 28, 2010 3:14 am

MIRI: The blatant use of gangster tactics to collect outstanding instalment payments and repossess vehicles will soon be outlawed when a nationwide law is introduced.

The Domestic Trade, Cooperatives Affairs and Consumerism Ministry is drafting a law to govern matters relating to collection of instalment payments and repossession of vehicles.

Deputy Minister Datuk Rohani Abdul Karim said yesterday the Government had to step in and regulate the business as the rough tactics were becoming too blatant.

Many financial institutions use the services of third parties to collect outstanding instalments or repossess vehicles.

There have been complaints that some third parties use scare and gangster tactics when carrying out their work.

“We cannot allow such methods to continue. There have been cases of gangsters going around ambushing vehicle owners in the streets, in offices and even breaking into their homes to ask for payment and to repossess vehicles.”

Rohani said the new law would require all third parties involved in vehicle repossession and collection of outstanding instalments to be licensed.

“Anyone wanting to get involved in this business must set up a proper company and register with the ministry.

“Those employed must be professionally trained and be governed by a code of ethics.

“These companies must adhere to guidelines. They cannot simply hire thugs and gangsters to do their job for them,’’ she told a press conference here during her Hari Raya visit to the ministry’s Miri division office.

Rohani said the draft of the law would be tabled at the next Dewan Rakyat sitting.

Asked about the severity of gangster involvement, she said there was no proper data, but based on public complaints and feedback, the problem was widespread in cities and towns nationwide.

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