Consumers Association of Penang

Giving voice to the little people...since 1970

Stick to new borrowing guidelines

Bank Negara should not loosen its new car loan guidelines as suggested by the Proton Edar Dealers Association of Malaysia (Pedar).

According to news reports,  Peda claims that  members’ income have been affected because with the new guidelines, only 30%  of the potential car buyers  have managed to secure  hire-purchase loans.

However there are good reasons why the guidelines are needed and must continue to be implemented.

Concerns Regarding Our Cyber Security And Electronic Banking Still Unanswered

The Associations of Banks in Malaysia (ABM) has endeavoured to address the Consumers Association of Penang’s (CAP) concerns regarding Malaysia’s cyber security but unfortunately have left many queries unanswered. CAP believes it is necessary that we spell out our concerns clearly and in detail once more, so that they may be addressed appropriately; and we hope that relevant parties are able to explain things in a plain manner.

 We would much appreciate it if those in charge could explain to us very specifically, what new measures will banks take to ensure our cyber security is iron clad. After all, vague explanations accompanied by declarations of repeating the same old security measures to combat new threats do not exactly incite consumer confidence.

Bank Negara Must Stop Banks from Using Unfair Methods of Calculating Interest


Banks should be stopped from taking unfair advantage of borrowers with personal loans or fixed rate hire-purchase loans (of either the conventional or Islamic financing variety. )

These borrowers lose twice over because interest on the loans are calculated on a flat rate basis and rebates are calculated based on the Rule of 78.

The flat rate method charges interest on money which has already been repaid whilst the Rule of 78 penalizes those who repay early.

Debt Collection Must Be Regulated

The country’s household debt is high at 88% of the Gross National Product and with an average debt repayment ratio of around 44% (that means that 44% of the income goes to settling debts) Furthermore, as many as 55 people on average being declared bankrupt every day.

That means that many people have been unable or may soon be unable to pay their monthly instalments. With so many Malaysians in debts it makes sense to regulate the debt collection business.


Unfair Contract Terms in Auctions

Consumers are faced with very unfair contract terms in the Condition of Sale when they take part in auctions.

These terms are one-sided and put the bidder/purchaser in an extremely disadvantaged position at auctions.