16 October 2007

I REFER to the article by Seet Mun Chor on Sept 17 about banks. I would like to share my experience regarding my car loan. I took a loan to buy a Kelisa in April 2002. I have paid instalments for slightly more than four years. Sometimes, I pay late, but I always make sure I clear arrears before it reaches three months.

I always call the bank to inform them of the date of my late payment. Last year, I was cheated by someone and was traumatised. My small business was jeopardised. I had to stop my business temporarily and went after this guy.

I had to spend a lot of time looking for him. Due to this, I failed to pay my instalments. To my surprise, exactly two months and 21 days after my last payment, the bank repossessed my car.

I talked to the bank officer. I showed them the police report I made against the con man and asked them to be reasonable, but they refused. The bank told me to pay the full amount to get my car back.

After two months, I went back with three months payment plus the storage fee. But the bank now told me I had to pay five months instalment.

I told them I could pay another lump sum before it reached three months but they refused. They told me to pay the full amount to get the car back.

I was shocked that they refused to compromise with someone who had paid instalments for four years and four months!

The bank also said according to Schedule 5, if a car owner failed to take back the car within 21 days, it would become the bank�s property. The bank also told me they would send my car for auction.

I told them to hold on and would try to arrange the full payment soon.

Unfortunately, I was not able to make up the whole sum, including the storage fee. Again, I went to the bank to get back my car with what I had. Again, they refused.

It had to be the full amount. They also told me the bank had sent my car for auction.

I found out later that despite sending my car for auction many times, no one bought it.

If my car was sold for a lower price during the auction, I would have to pay the balance. That would be strange because I will have to pay for a car that does not belong to me.

I now see why the bank does not want to compromise. They want the buyer in the auction to pay the balance. Why should the bank care about the problems of the car-buying public? It is easier to get the payment settled at an auction.

The banks in Malaysia are making enormous profits in many ways. They don�t care about people.

I think Bank Negara should introduce guidelines for car buyers depending on the years they have paid. I had paid RM30,264 out of RM40,000 which is the price of the car.

I have wasted RM30,000, because the banks are not interested in customers� problems.

A lot of people refuse to pay their loans and are willing to be blacklisted. Many are hiding from the banks, changing addresses and cell hone numbers.

People fear recovery officers who are hunting for them. What is the difference between Ah Long and banks sending these recovery officers?

The banking system in Malaysia is meant for the rich. The banks are not interested in helping the struggling businessman who has a cash flow problem and therefore needs time to recover.

What Seet Mun Chor said about banks and Bank Negara is true. The government who looks after the interests of the people should look into disciplining this corporate Ah Long and Bank Negara too. These two buddies are working together to squeeze customers for all they are worth.