Saturday, December 20, 2008

Is the bank has the right to demand for regularize car installment before they release/help you to renew your road tax?

Do have a car? Is your car is still under hire purchase installment? I am sure majority of Malaysian do. Well in this post I want to high light one issue which I think is not quite fair to us as hirer (bank's customer). Now during this bad time I am also quite sure that quite number of us might have some delay in paying the installment. Especially for those who work or having his own business and not having fix income, the delay or slight 'irregular' in payment is inevitable.

Now, assuming we have 'a little bit' of delay in the installments, but not enough 'delay' for the bank to repossess our car (under Malaysian Hire Purchase Act the delay must be more than 2 months 21 days) and our road tax is expired! Yes we are safe the bank cannot touch the car but we definitely desperate want to get the road tax so that we can drive it 'peacefully' on the road without having to sneak out from the police or JPJ.

The bad news is when we run to the bank asking them to temporary release our car title to renew the road tax they won't do it except we update our installment! (First of all I don't think that the bank has the right to hold the title. What are they afraid of? Even if the title is release to their customer/hirer there is always an endorsement on it LOUD AND CLEAR stating that the car is under lien. So no transfer could be made legally).

In my humble opinion the bank has now right or whatsoever to hold the title resulting the hirer delay in obtaining the road tax. There no provision under hire purchase Act nor any other law allowing them to that.

I think it is completely stupid act or 'measurement' taken by the bank to ensure the hirer updates their installment. Why? Simple, if a man need the car badly to go to work or to do his business, by having the stupid demand, he is now depressed and delayed in 'actively' trying to find as much as possible money or as quick as possible to settle the debts. If he can't work how could he pay for his installment? Doesn't make sense is it?

So, I am suggesting for those who having the 'trouble' please;

  1. Lodge or write a complaint letter to the Bank Negara Malaysia, AND if necessary
  2. File a summon in civil court claiming:-
    1. That the bank hand over the title (not only temporary for renewal of road tax, but for own save keeping)
    2. Damage for unable to use the car during the delay period
    3. Claim reimbursement from the bank for any cost of transfer that you might suffer to use alternative transport during the delay
    4. Even try to get hold of the bank for any risk of being summons by the police or JPJ during the delay.

Fellow Malaysian, this stupid and uncivilized practice of the bank must be stop! And they should respect or at least have the courtesy towards their customers.

Ok till we meet again..


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