Amended Hire Purchase Act sees RM90 fee for used car sellers, new rules for repossession.However inspection on used motorcycles are exempted due to the small number and amount involved.Read the full news from Bernama below.
USED VEHICLE SELLERS MUST PAY RM90 INSPECTION FEE
PUTRAJAYA, June 9 — Used vehicle sellers will have to pay RM90 inspection fee to Puspakom before sale can be made, in line with implementation of Hire Purchase Act (Amendment 2010) on June 15.
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said inspection on used motorcycles are exempted due to the small number and amount involved.
He said the compulsory inspection was to protect buyers of used vehicles and not meant to inconvenience sellers or buyers of used vehicles.
Previously, Puspakom inspection was needed for transfer of ownership to ensure that the vehicles were not stolen.
“If previously, checks were on four items, we have added another 14 items to ensure safety. Puspakom will issue a certificate that can be used for ownership transfer and hire purchase agreement with banks.”
He said the issue of car dealers returning 90 percent of booking fees should deals fall through do not arise as it is not stated in the law.
However sellers may request for 10 percent deposit from buyers as required under the Hire Purchase Act.
The government has also set new conditions for vehicle repossessors to protect the interest of consumers.
Only those registered and given permits by the ministry will be appointed vehicle repossessors.
Ismail said permit applicants will have to undergo screening to check for criminal record.
“They also must adhere to procedures whereby repossession can only be done from 9am to 9pm daily. No force must be used in the process.
“If the vehicle is in the garage, they can’t enter the house compound except with a court order and can be reported to police for flouting it,”
He said this in line with Hire Purchase Act 1967 (Amended 2010) and Hire Purchase Rules (Permit Acquisition and Repossession Procedures) 2011.
Some 451 repossession permits had been issued in Kuala Lumpur and Selangor while 1,053 people had applied nationwide.