Report: Malaysian Banks Repossess Up To 1,200 Vehicles Monthly
Image source: Facebook
In a report published this week by local Bahasa language daily Kosmo!, it is estimated that no less than 1,200 vehicles – both cars and motorcycles – are repossessed by local Malaysian banks each month. Worryingly, much of these stem from younger-aged buyers who have defaulted on their loans.
Of which, it is estimated than just 40 from said figure are successful in reacquiring their vehicles, whereas the rest fail to do so due to their inability to secure extensions for their vehicle loan payments. Among the causes for which are unemployment, layoffs and related misfortune including illness.
Kosmo! had quoted the Chairman of the Persatuan Penyelesaian Pengguna dan Peminjam Malaysia (4PM) Rosland Mohd, who shed light on the matter. According to Rosland, based on complaints received, the number of vehicles towed has increased since last year.
"On average, we receive 30 to 40 calls every day from people complaining that their cars and motorbikes have been towed,” said Rosland further to Kosmo!.
"One of our most recent cases involved the owner of a Perodua Axia who complained that his car, which was used as a shelter, was towed by the bank due to unpaid monthly installments. The owner, who works in Kuala Lumpur and is a Terengganu native, had to live in a car to pay off debts.

Image: Bjak.my
"At 4PM, our role is to help extend these loan periods. We will also negotiate with the banks by asking them not to auction the complainant's vehicle," adds Rosland when spoken to by Kosmo! in Petaling Jaya recently.
Furthermore, Rosland and his organisation estimates that up to 70% or 1,050 complaints received involve car owners, while the rest are motorcycles. These complainants are also mostly are aged between 21 to 40 years old.
He explained that the average vehicle owner makes monthly installment payments as usual to the bank, but is 'stranded' in the middle of the road due to financial problems. "Handling loan cases that have been made for a long time is easier than those who have just started a loan, and we usually will find a funder to save the vehicle from being auctioned," he said.
Rosland, however, expressed objection towards the approach used by the vehicle repossession companies appointed by banks, which are often seen in having elements of gangsterism and unethical practices.
"Our people are easily deceived by tow trucks, there was one complaint received by a victim who was afraid to go home because he was informed that the tow truck was waiting for him.”
“Some even threaten to paste ‘Red Notices’. There are also cases where towing firms threaten to file police reports and call up lawyers alleging that these vehicle owners have cheated in the sale and purchase business because they did not make their monthly payments,” continued Rosland.
Rosland further notes that, which cases like these, the threats from vehicle repossession firms usually ceases when the matter is reported to the police or the Ministry of Domestic Trade & Consumer Affairs (KPDNHEP).

Image source: Facebook
In the same report, Dr. Amina Josetta Kayani, Executive Director of the Association of Banks In Malaysia, informed Kosmo! that buyers facing difficulties servicing their monthly installments are advised to contact their respective banks.
She also adds that these individuals are encouraged to discuss their issues in a truthful, honest manner with their banks.
“Alternatively, customers seeking financial assistance can consult Counseling and Credit Management Agencies under the Debt Management Program for individuals or the Small Debt Settlement Scheme for Small and Medium Enterprises," continued Dr. Amina.
Written By
Thoriq Azmi
Former DJ turned driver, rider and story-teller. I drive, I ride, and I string words together about it all. [#FuelledByThoriq] IG: https://www.instagram.com/fuelledbythoriq/
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