Lackadaisical attitude can lead to sellers facing bankruptcy, jail

KUALA LUMPUR: Due to the "tidak apa" attitude of certain individuals, cars under hire purchase (HP) that are sold off without scrutiny inevitably cause a great deal of trouble to its sellers.
At a press conference, MCA Public Services and Complaints head Datuk Seri Michael Chong said such deals usually occurred as private transactions, through used car dealers or through print ads.
"Later on, the individual discovers that the car was not transferred to the buyer's name. As a result, the seller is still held as responsible should anything occur, despite no longer possessing the car."
Chong said when the buyer or dealer was sought out, both car and purchaser were nowhere to be found.
"Not only will the individual face action from financial institutions, they would also be sought after by the police.This in turn led to being charged in court, with some sellers facing bankruptcy.
"If the individual is unable to pay the institutions, they could possibly be sued for bankruptcy," said Chong.
Chong emphasised that the individual should not pay, based on his legal advisors' opinion.
"In the event the car is used for criminal purposes, the person is held as liable since they are paying for various things like road tax, insurance and the car installments."
Attributing such acts as the work of scammers out to defraud complacent individuals, Chong urged sellers: "Please do not sell your vehicle indiscriminately if under hire purchase, as you could face a fine not exceeding RM10,000, three years imprisonment, or both," he said, quoting Section 38 of the Hire Purchase Act 1967.
Chong observed such cases have been going on for at least two decades.
"Last year I received 14 complaints. This year has produced four. In many instances, the seller is simply not bothered to go through the documentation properly."
He advised the individuals to lodge a police report, which may be eligible as a defensive alibi in court, subject to proof.