Consumers Association of Penang

Giving voice to the little people...since 1970

How hire-purchase amendments protect consumers

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The Ministry of Domestic Trade, Cooperatives and Consumer Affairs should continue to protect consumers by strictly enforcing the Hire-Purchase Act 1967 (HPA) and the recent amendments which came into effect on 15 June 2011.

Those in the motor business are complaining that their sales are down by 20-30% and they attribute it to the amendments though they also acknowledge that the amendments do protect consumers.

Critical illness insurance policy puzzles consumers

One of the problems with the critical illness policy is that it is being sold by agents who give policyholders the wrong impression that the coverage is wider than it really is. (A critical illness policy is one that pays out a lump sum upon confirmation that the policyholder has been diagnosed with one of the illnesses or conditions covered under the policy)

For example, the agent assures the policyholder that cancer is one of the critical illness covered but does not explain that it has to be the “right “cancer.

Need to review role of Malaysian Communications and Multimedia Commission

CAP today calls on the Ministry of Information Communications and Culture to take action against the Malaysian Communications and Multimedia Commission (MCMC) for failure in playing their role as a regulatory body for multimedia matters.

This call is made in view of the uprising number of complaints made by consumers against Content Providers in ripping off consumers through their various modus operandi. It is bad enough that multimedia users are subjected to spam, spoofing, fraud etc. to rip them off, but when licensed entities also rip consumers off by breaching the laws and regulations that they promise to abide with when applying for their licences, it is intolerable.

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Mortgagees Overinsuring for Fire Insurance of Mortgaged Properties

Banks are exploiting mortgagors by taking out fire insurance on the mortgaged properties to cover the full amount of the loan which in almost all cases will be about 90% of the market value of the properties.

Market value is the combination of the cost of the land and of the building on it. Fire insurance does not cover land, but only the cost of re-building the building(s) on it.

Is Our Cyber Security Non-Existent?

The issue of the Latin American gang that hacked into some of Malaysia’s ATM’s (automated teller machines) and absconded with a little over RM 3 million is both frightening and eye-opening. It should be an indication to us that our cyber security is grossly lacking and perhaps our money and personal information are not as safe as we once thought them to be.