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.
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.
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.
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.
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.