Anybody know what a 'loan assignment' is?

[minivan]

Anybody know what a 'loan assignment' is?

Dunno in detail, but this is what i understand....

Its when u want to sell your car which is still under financing, the buyer takes over your loan and continue to pay, so he can enjoy your rates and loan amount (the loan will be re-named under the name of the buyer), the car will also 'tukar nama' to the buyer's name. BUT you (the seller) have to remain a guarantor to the loan.

It was something that was offered by the bank to one of the potential buyers of my car.

Worse case scenario... he defaults, bank chases me. I don't pay, the car gets repossessed (not mine anymore)... Ohh... my name gets blacklisted for a while (In CCRIS for 1 year) then back to normal.... Is this true?? or is there anything i've overlook??

Any insights on this one anyone??

 

[tonytony]

bro,
i see u know what CCRIS is, are u in the banking industry ? as far as i know, CCRIS only reports on loans outstanding for an indi. When the loan is "re-named" under the new owner, then ur name will not appear in CCRIS anymore. However, as in described in ur situation, if the new owner defaults, and u being the guarantor, ur name will then be posted into CCRIS by the bank for loan amount outstanding. Worse, if u don pay, ur name will be classified as "Defaultor" under CCRIS,AS400, Official Assignees Office, IRB & Imigration Malaysia..........
which means to say, ur F**KED, with capital wordings.
Of course the bank can arrange for a loan assignment to the new owner, with him being the new borrower, BUT u as the guarantor & the loan will be approved based on the guarantor's credit standing. Ie. YOU.
So, to the bank=no change in int revenue, to the new borrower=good deal, to you=very disadvantageous as ur using ur credit standing to back-up someone else without enjoying the asset.
Must be a heck-of-a-buddy you have there huh

 

[mag9556]

Wah..so long didnt involve in this industries got this kind of term....
Yup.. CCRIS, CTOS and FIS is nearlly the same..checking that u r blacklist or not as well as how many loans and credit cards u have from bank..
Wanna to take such challenge for the new term just for selling your car purpose??
Better dun...Good Luck

 

[Doink]

this is very unfair for the person selling his car still under loan...

 

[minivan]

Thanx a bunch to those who have replied...

I'm not really in banking per say, but closely related enough to know what CCRIS is....
I definately have resevations in entering such an agreement, thats why i'm kinda researching a bit about it before deciding on anything, even to the extent of asking here on this forum....

I have'nt asked the bank yet, but why can't the bank allow the seller to use somebody else to be the guarantor (his wife or someone)?? If that someone is just as worthy, its the same thing right?? Is there by any chance anybody would have the answer for this??

 

[CieMen]

If u wanna ask someone to be the guarantor other than the 1st owner in the assignment, then hv to do a new loan.
Under assignment case, ur current HP agreement is still valid & it's under ur name, so u must to be the guarantor instead of the Hirer...

 

[tonytony]

precisely, the bank is doing minimum work while still holding on to your balls & collecting their revenue.
Better to ask the buyer to apply a loan by himself, pay off ur current loan & he gets his car.

 

[minivan]

OK...thanks for the replies... its a no go on my part anywayz...