- May 24, 2008
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“Sambung Bayar” is actually unlawful and if convicted can be fine up to RM25,000 or 3 years jail or both. You have no right to “transfer” or “sambung bayar” a person’s bank loan facility to another person.
Act 212, 36A. Any owner, dealer, agent or person acting on behalf of the owner who collects any payment in respect of a hire-purchase agreement other than a payment listed in the Second Schedule or a payment permitted under this Act shall be guilty of an offence under this Act.
36B. Any person not being an owner, dealer, agent or person acting on behalf of the owner who collects any payment from a hirer in respect of a hire-purchase agreement shall be guilty of an offence under this Act.
38. Every person who, by the disposal or sale of any goods comprised in a hire-purchase agreement, or by the removal of the goods, or by any other means, defrauds or attempts to defraud the owner shall be guilty of an offence under this Act and shall, on conviction, be liable to a fine not exceeding twenty five thousand ringgit or to imprisonment for a term not exceeding three years or to both.
It is also unlawful for any person, dealer, agent or a company to receive, take or accept any kind of deposits without a valid license – Act 1989: Section 25(1). It is also unlawful for any person, dealer, agent or a company to advertise the illegal taking of deposits – Act 1989: Section 27(A).
I urge the public not to engage in any kind of “Sambung Bayar” as whatever agreement you have does not comply to the laws of Malaysia and may not be applicable if thing gets messy which requires Court proceedings.
Typical Car Dealer Syndicate Modus Operandi:
1. Dealer will offer to buy at market price (which is unusual as legitimate dealer will always buy below market price) and mentioned he already has interested buyer. Dealer also promised to pay full settlement to the bank within 2 to 4 weeks and will inform the bank by the next business day.
2. Dealer will ask you to sign an agreement, of which there is no clause whatsoever about full loan balance settlement. Key clause would be that Dealer will (a) continue to pay monthly installment to the bank, (b) Dealer will be responsible on traffic summons, any police case and etc after date of agreement, (c) that you will agree to sign release letter and etc…
3. There may be another agreement that the Dealer would ask you to sign. This agreement states that you have given your car to the Dealer with “Open Heart” or “Rela Hati” and that this car has no criminal records and such. On Dealer’s behalf he will only sign the first agreement. The Dealer will not sign the second agreement as this agreement’s signature block is reserved to the “Prospective Buyer” or “Prospective Penyambung Bayar”.
4. It would normally takes as quick as 2 weeks to as late as one year to find a “Prospective Buyer” or “Penyambung Bayar”. This is when the issue will start when Dealer never really called the bank as he has promised to inform that he will pay the full settlement. If Dealer cannot find any “Penyambung Bayar”, he will not pay the bank as this would be considered as losses. The Dealer will also not pay the full settlement as “verbally” promised.
5. When your bank loan is in default for more than 2 months and 21 days, you will get the notice of repossession from the bank. The bank may also sue you since you have entered into an agreement without the knowledge of the bank.
6. Even if the Dealer manages to find “Penyambung Bayar”, the dealer would normally asked for a sum of deposits as credit assurance in case “Penyambung Bayar” failed to continue to serve the bank loan. Most “Penyambung Bayar” would go for this kind of scheme as they have been blacklisted or they already have high commitments and no longer able to take anymore loan and most of the time, they will only last from as quick as one month to only 2 years.
7. To make matters worst, the Dealer most of the time will walk away with a hefty amount of deposits. The victims in the end will still be you and the “Penyambung Bayar”.
The Business or Activity of Car “Sambung Bayar” «
Act 212, 36A. Any owner, dealer, agent or person acting on behalf of the owner who collects any payment in respect of a hire-purchase agreement other than a payment listed in the Second Schedule or a payment permitted under this Act shall be guilty of an offence under this Act.
36B. Any person not being an owner, dealer, agent or person acting on behalf of the owner who collects any payment from a hirer in respect of a hire-purchase agreement shall be guilty of an offence under this Act.
38. Every person who, by the disposal or sale of any goods comprised in a hire-purchase agreement, or by the removal of the goods, or by any other means, defrauds or attempts to defraud the owner shall be guilty of an offence under this Act and shall, on conviction, be liable to a fine not exceeding twenty five thousand ringgit or to imprisonment for a term not exceeding three years or to both.
It is also unlawful for any person, dealer, agent or a company to receive, take or accept any kind of deposits without a valid license – Act 1989: Section 25(1). It is also unlawful for any person, dealer, agent or a company to advertise the illegal taking of deposits – Act 1989: Section 27(A).
I urge the public not to engage in any kind of “Sambung Bayar” as whatever agreement you have does not comply to the laws of Malaysia and may not be applicable if thing gets messy which requires Court proceedings.
Typical Car Dealer Syndicate Modus Operandi:
1. Dealer will offer to buy at market price (which is unusual as legitimate dealer will always buy below market price) and mentioned he already has interested buyer. Dealer also promised to pay full settlement to the bank within 2 to 4 weeks and will inform the bank by the next business day.
2. Dealer will ask you to sign an agreement, of which there is no clause whatsoever about full loan balance settlement. Key clause would be that Dealer will (a) continue to pay monthly installment to the bank, (b) Dealer will be responsible on traffic summons, any police case and etc after date of agreement, (c) that you will agree to sign release letter and etc…
3. There may be another agreement that the Dealer would ask you to sign. This agreement states that you have given your car to the Dealer with “Open Heart” or “Rela Hati” and that this car has no criminal records and such. On Dealer’s behalf he will only sign the first agreement. The Dealer will not sign the second agreement as this agreement’s signature block is reserved to the “Prospective Buyer” or “Prospective Penyambung Bayar”.
4. It would normally takes as quick as 2 weeks to as late as one year to find a “Prospective Buyer” or “Penyambung Bayar”. This is when the issue will start when Dealer never really called the bank as he has promised to inform that he will pay the full settlement. If Dealer cannot find any “Penyambung Bayar”, he will not pay the bank as this would be considered as losses. The Dealer will also not pay the full settlement as “verbally” promised.
5. When your bank loan is in default for more than 2 months and 21 days, you will get the notice of repossession from the bank. The bank may also sue you since you have entered into an agreement without the knowledge of the bank.
6. Even if the Dealer manages to find “Penyambung Bayar”, the dealer would normally asked for a sum of deposits as credit assurance in case “Penyambung Bayar” failed to continue to serve the bank loan. Most “Penyambung Bayar” would go for this kind of scheme as they have been blacklisted or they already have high commitments and no longer able to take anymore loan and most of the time, they will only last from as quick as one month to only 2 years.
7. To make matters worst, the Dealer most of the time will walk away with a hefty amount of deposits. The victims in the end will still be you and the “Penyambung Bayar”.
The Business or Activity of Car “Sambung Bayar” «
