04-07-2025
Consumer group urges BNM, KPDN to overhaul repossession laws amid unethical conduct claims
PPIM demands probe into banks over alleged unethical car repossessions
Nadzim (left) shows a clip of car repossession agents allegedly entering a gated residential area without proper authorisation.
SHAH ALAM – The Malaysian Muslim Consumers Association (PPIM) has called on Bank Negara Malaysia (BNM) and the Domestic Trade and Cost of Living Ministry (KPDN) to review and revise current laws and policies surrounding vehicle repossession, citing growing concerns over unethical conduct.
Its chief activist, Datuk Nadzim Johan referred to a recent incident involving a group of car repossession agents. Nadzim (left) stated that the agents failed to provide official identification or original documents, offering only photocopies as proof of authority.
They allegedly entered a gated residential area without proper authorisation, claiming a court order to tow a vehicle.
He recounted that the agents failed to provide any official identification or original documents, showing only photocopies as proof of authority.
"When I confronted them, I asked for their ID or pass. They claimed they had a court order, but what they showed was just a photocopy. We need the original document.
"They said they could repossess the vehicle anytime, even in the middle of the night. What kind of law allows that?" he told Sinar Daily.
According to Nadzim, the situation occurred on Saturday, when courts and government offices were closed, leaving the car owner unable to verify the legitimacy of the repossession.
Despite this, the agents allegedly pushed forward with their actions.
While they initially agreed to return the following Monday, Nadzim said the agents arrived early in the morning and entered the premises without waiting for any verification process.
"They were trying to repossess a Nissan and the outstanding amount was only RM12,000. Yet, they showed up with 20 people, like they were going to war," he said.
He further claimed the person targeted wasn't the owner of the vehicle but a guarantor who was unable to continue payments due to undergoing cancer treatment.
"Even if the car is auctioned later, the guarantor won't get anything back, even though the car is worth RM50,000 to RM60,000," he added.
Nadzim stressed the need for KPDN and Bank Negara to implement a more stringent and compassionate framework for handling such cases.
"We want to know who processes these repossessions? On what days can it be done? Who approves it? There must be a thorough review. Don't push the public to the point where something unfortunate happens," he said.
He also criticised some agents for acting like gangsters and trespassing onto private property, alleging that banks gave them unchecked power with little to no oversight.
He said such practices must be stopped immediately.
PPIM plans to meet with KPDN soon and urged BNM to launch investigations into any banking institutions found to be involved in illegal or unethical car repossession activities.
