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Shutdown co-ops that are agents of moneylenders

admin March 31, 2011 0 Comments

Cooperatives that are nothing more than agents of moneylenders should be shut down by the Malaysia Cooperatives Societies Commission (MCSC). The MCSC cannot and should not condone such an activity, whether legal or otherwise. We have received complaints about one such cooperative which has no qualms about using unethical methods to get its members to sign up for loans with a licensed moneylender....

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Bank Negara’s role in creating more credit card debt

admin March 31, 2011 0 Comments

No More Automatic 20-day Interest-Free Period for Credit Cardholders Credit card debts will increase when the 20-day interest-free period (the grace period where purchase will not be charged interest) will no longer be automatically enjoyed by all cardholders. Interest Free No More Cardholders have been informed that from 1 July 2008 (for one bank it is 1 May 2008), only those who make full...

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MBF cards promotion – Tribunal awards consumer

admin March 31, 2011 0 Comments

Consumers often find that they have been misled by advertisements — the offer is not what it appears to be. Many choose not to pursue the matter further but not Bryan Chua of Tawau. In 2008, he took MBF Cards (M’sia) Sdn Bhd or MBF to the Tribunal for Consumer Claims for its refusal to give him his 37” LCD TV and won his case. (However, MBF is applying for judicial review to overturn the...

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Buyer’s right to build-then-sell system

admin March 31, 2011 0 Comments

The Consumers Association of Penang (CAP) refers to the article “Far from being rotten” ( NST – Property, June 23), by Datuk Eddy Chen, the immediate past president of REHDA, on why there is no need to change the present Sell-then -Build (STB) system. His argument is that abandoned projects form only a small portion of the millions of housing units successfully built, as such there is not...

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Buyers of auctioned properties cry foul

admin March 30, 2011 0 Comments

Greater transparency at auctions is needed to protect buyers of properties where no titles have been issued. This is because the auctioning of properties without titles (for example flats and apartments) is not regulated by any statutory provisions. Buyers are bound by the contract called the Proclamation of Sale. (PoS). We have received complaints from those who have bought flats at property...

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Compensation based on market value not insured value

admin March 30, 2011 0 Comments

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...

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Stricter control over co-operatives needed

admin March 30, 2011 0 Comments

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. Many times co-operatives end up...

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Bank charges – stop the extortion racket

admin March 30, 2011 0 Comments

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....

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Concurrent actions to recover loans are unfair

admin March 30, 2011 0 Comments

The practice of using concurrent actions to recover loans by banks should be disallowed by Bank Negara. This practice is unfair for it unnecessarily increases the debt of the borrower. In housing loan agreements, there is a clause which gives the banks the right to recover the debt by filing foreclosure proceedings to auction the property and also a civil suit all at the same time. The clause...

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Borrowers ripped-off by housing loan contracts

admin March 30, 2011 0 Comments

The only way to protect Malaysian consumers is to have an Unfair Contract Terms Act similarly to that in the United Kingdom (UK). With such an Act, once the term or clause is deemed unfair, it becomes unenforceable. It then becomes irrelevant to the borrower how many of such unfair terms are in the contract as they are considered null and void. Furthermore, even if the levying of certain costs is...

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