Consumers Association of Penang

Giving voice to the little people...since 1970

Compensation based on market value not insured value

General insurance companies should insure motor vehicles based on the agreed value. Many policyholders are already under the wrong impression that they own an agreed value motor policy.

They are unaware that in Malaysia, motor insurance policies are indemnity policies. This means that if the car is written off as a total loss, the amount compensated by the insurance company will only be its market value, which is often much lower than the insured value.

Restrictive trade practices in a free market

WE practice a free market system, but how free and competitive is it?

So what if the industries are dominated by a few players? What is wrong with that?

When there is less competition, the players in the market will be able to dominate it and fix high prices for their goods and services. It works to the company's advantage that there is no or very little competition. Where there is competition the companies may act to get rid of rivals. They may work among themselves to fix prices or divide the market among themselves to keep out competitors.
 

Stricter control over co-operatives needed

The Consumers Association of Penang disagrees with those who recently voiced their opinion that the amendments to the Co-operatives Act 1993 will kill the co-operative movement.

Many of our local co-operatives do not operate in the spirit in which co-operatives are founded - which is mutual help to improve the social and economic well being of its members.

Unfair trade practices should be made illegal

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Often sellers of goods or services use unfair methods to get consumers to buy their goods or sign up for their services.

Consumers have at one time or another been put under pressure by the sales person to buy a product or sign a contract of service. Consumers too have been misled about the price or quality of the product or services purchased.

Bank charges – stop the extortion racket

Bank charges have become purely a money making scheme for the banks. This is the only logical conclusion since the fees bear no resemblance to the actual cost borne by the banks.

It is time the authorities put a stop to excessive bank charges. (We estimate that banks earned in excess of RM1 billion in 2004 from banking fees and charges.)

Unfair banking charges are many and vary from bank to bank. However looking at some of the fees connected with housing loans is sufficed to show how unreasonable the fees are.