KUALA LUMPUR: Defaulters of car loans should not damage the vehicles that are about to be repossessed as it would be deemed a criminal act, says the Bukit Aman Commercial Crime Investigation Department (CCID).
Its director Comm Datuk Seri Ramli Mohamed Yoosuf said the vehicle was officially owned by other parties such as banks or financial institutions.
“It is not a commercial crime per se, but it falls under Section 427 of the Penal Code for committing mischief that causes loss or damage.
“People should not resort to such action as it will be detrimental to them in the end,” he said when contacted yesterday.
He was commenting on a video circulated on social media, showing a woman and a man damaging a car which was to be repossessed.
Initially, the social media post accompanying the video stated that one of the people seen in the video was the car owner who had failed to make loan repayments for eight months, thus leading to the car to be repossessed.
However, the person who posted the video later clarified that the person had in fact been duly settling the monthly repayments but instead of paying directly to the bank, he had sent the payment to the original car owner, who was actually the one who had failed to make the loan repayments.
Malaysians Against Rape, Assault and Snatch Thief (Marah) founder Dave Avran said the public should avoid “sambung bayar” (taking over hire purchase payments) as it was a losing proposition for the buyer, given the fact the car was still under the seller’s name.
“In the case of the (viral video), the buyer paid the owner, but the owner did not pay the bank. Even if the buyer pays directly to the bank, the owner can legally withhold the name transfer,” he said.
Avran said a “sambung bayar” agreement was not recognised as legally binding by banks or the Road Transport Department, even if it was drawn up by a lawyer.
“Hence, the owner can demand the return of the car at any time, or demand money for the name transfer or in worst case scenario, outright refuse to transfer the name.
“It is best to buy a car within your financial means and deal directly with the bank,” he added.
