JOHOR BARU: A businessman here is crying foul over the forced auction of his MPV by a bank at below market price.
Poo Lay Chew, 38, from Taman Johor Jaya claimed that when he defaulted on his loan repayment in January and February 2013, the bank repossessed his Toyota Estima and sent him a letter dated June 2013 that the car had been auctioned off at RM30,500.
“A repossession will only take place after a borrower has defaulted for three to six months, but in my case, it was just after two months,” he said.
Poo said when he queried the bank, he was told the car was sold to the highest bidder.
“They claimed it was the highest price fetched as his MPV was a reassembled car (kereta potong),” he told a press conference organised by Johor MCA Government Affairs Liaison bureau chief Michael Tay Chee Boon.
He said when he signed for a loan of about RM235,000 with the bank in April 2010, it was described in the agreement as a second-hand car priced at RM234,974.30.
“The issue of kereta potong did not arise when the bank approved my loan. It could have just rejected my application at that time,” he added.
He said the bank officer also failed to show proof from the Computerised Vehicle Inspection Centre (Puspakom) that his MPV was a kereta potong.
Poo said he paid RM58,000 as deposit to the bank with the balance of RM176,974.30 to be paid in 108 instalments at RM2,230 monthly, starting from April 2010.
“The bank is saying I owe them RM118,805.63 and Bank Negara has declared me a bankrupt since August 2015,” he said.
An officer with the bank’s credit administrative centre here said the bank was investigating the case.
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