A 24-year-old repossession agent, Muhammad Aiman Mudzakir Azmi, admitted guilt in the Sungai Petani Magistrate's Court for trespassing into a car owner's Bandar Amanjaya residence at approximately 7PM last Saturday, June 14. He was subsequently fined RM2,800. The accused, however, requested a lenient sentence, noting that his prompt guilty plea had helped expedite court proceedings. Charged under Section 448 of the Penal Code, he faced a maximum of three years in prison, a fine of up to RM5,000, or both. He also informed the court that he is the primary breadwinner for his parents and a younger sibling who is still in school. In Malaysia, it’s not unusual, whether we hear about it or not, for repossession agents to break into people’s homes to take back cars. Some might think it’s fair, especially when the car owner hasn’t made payments for over two months and 21 days. But the truth is, it’s still against the law. Under the Hire Purchase Act 1967, agents aren’t allowed to enter private property without a court order, no matter how much is owed. Skipping payments doesn’t give anyone the right to break the law.Permit holders are legally bound by the code of ethics, and guidelines issued by the Controller when carrying out repossession activities. However, the concern remains; how many of them actually comply with these rules while performing their duties?
If you’re unfortunate enough to experience a vehicle repossession, it’s important to know your rights. Repossessors must obtain your consent before entering your premises, and they are not allowed to use force or any form of intimidation to repossess the vehicle.
They must also provide a standard notice containing important information, such as the address and phone number you can contact. In addition, they are required to give you reasonable time to remove any personal items from the vehicle.
Before towing your car, the repossessor must present a valid permit authorizing the repossession, their MyKad , and either a repossession order from your bank or a court order.
If a repossessor uses oppressive tactics or violates your rights in any way during the process, you should file a complaint with the bank that initiated the repossession. You can also escalate the matter to the Association of Hire Purchase Companies Malaysia for support and further action.