Vehicles Repossessed Every Month!

Far too often, people get caught up in the excitement of owning a new car and make impulsive decisions without properly assessing their financial capacity. According to revelations by the Malaysian Consumer and Borrower Dispute Resolution Association, an estimated 1,200 vehicles, both cars and motorcycles, are being repossessed monthly, with the vast majority of those affected being young adults.

This repo epidemic, as it has come to be known, has left many questioning the financial stability of Malaysia’s future generations and the potential for a broader economic decline. Of the staggering number of repossessions, a mere 40 borrowers managed to reclaim their vehicles. At the same time, the rest are left to navigate the treacherous waters of financial uncertainty, unable to convince banks to extend their payment periods.

Source: https://majoriti.com.my

The reasons behind these repossessions paint a picture of a generation grappling with the harsh realities of seemingly attractive offers, the desire to keep up with their peers, an unforgiving job market and unexpected hardships. Unemployment, job terminations, and personal misfortunes, including illness, have also contributed to the growing number of individuals unable to meet their monthly payments for a depreciating asset.

However, the problem extends beyond external factors. Financial mismanagement, particularly among younger Malaysians, has also played a significant role in this crisis. Many young Malaysians have taken out loans to finance lavish holidays and lifestyles they can ill afford, only to find themselves drowning in debt when reality catches up. They are learning this lesson the hard way as they watch their prized possessions—the very symbols of their perceived success—being towed away.

As the nation grapples with this crisis, questions arise about the role of banks and repossession companies in exacerbating the problem. Reports of unethical and gangster-like behaviour by repossession agents have been the norm rather than the exception. Some going as far as threatening to post red letters and to make false police reports, claiming fraud on the part of the vehicle owners. This problem is further compounded by the fact that many car owners are unaware of the standard operating procedures (SOP) for repossession.

This lack of knowledge makes them vulnerable to intimidation and manipulation by unscrupulous agents exploiting their ignorance for personal gain. The government and financial institutions must swiftly address this repo epidemic and the underlying issues that have led to its emergence. Even BNM may not be fully aware or understand what individuals face! Don’t talk about AKPK – they are in their own world!

The nation’s youth must not be left to bear the burden of economic uncertainty alone. In some other instances, retired people also face dire consequences for borrowing too much or having unpaid credit card bills from their previous jobs or failed business ventures. If we are Madani, then please exhibit some compassion and kindness.

Reference:

1,200 vehicles repossessed every month across Malaysia, Fernando Fong, The Rakyat Post, 20 June 2024