Sambung bayar contract has no legal value – KPDN

Everyone knows that car pawn, or sambun bay, in which someone makes monthly installments to “own” a car that doesn’t legally belong to them, has been around for a long time. It is often used as an outlet for vehicle owners who are unable to make monthly payments to the bank, with payment for the vehicle to be continued by a new guardian of the vehicle, who has given effectively rent the car without owning it. It sounds simple, but in fact there are enough contract cases did not end in pleasant fashion, to the owner or "buyer". More importantly, main It's against the law to pawn a car. This was echoed by the director general of enforcement of the Department of Domestic Trade and Cost of Living (KPDN), Datuk Azman Adam, who reminded the public that any contract signed with the intent to continue vehicle payment by one sambun bay program has no legal value, Sinar Harian report. He said that under a lease-purchase agreement signed between the owner (in this case a bank or financial institution to which the HP loan is secured) and the lessee, there is a condition that the lessee cannot ' sell' the vehicle without the owner's license. permission. To do otherwise is to commit owner fraud under the Lease Purchase Act of 1967. Azman says this doesn't mean someone else can't pay for the vehicle and use it, as the transfer of rights under a lease is allowed under Section 12 of the Lease Act 1967. that can only be done with the permission of the bank/financial institution. In such cases, if the lessee intends to transfer its rights to the vehicle in accordance with HP's agreement, the lessee must notify the bank/financial institution of its intention and seek to obtain permission and approval from the bank. “If the bank agrees, the lease purchase agreement in the name of the lessee will not be terminated, but a new 'transfer' document will be prepared by the bank and this document will be prepared by the original lessee, the bank also as a signatory. party continues to pay for the vehicle, provided that the party continuing to pay is not blacklisted by financial institutions. The rights and obligations of the original lessee will continue to be in effect for the duration of the assignment,” he said. However, Azman said this is not the case for most sambun bay cases, with activity occurring outside of the bank's knowledge. In such situations, the lessee negotiates directly with the pay-as-you-go about the intention to 'sell' the vehicle still in the lease-purchase agreement. “The installment party only needs to make a small advance and on behalf of the lessee continue to pay monthly installments to the bank. Usually, the agreement between the lessee and the new party will be concluded through a written contract or sometimes just a handshake,” he explained. Such cases continue to spread, he said, because it's an easy way out for both parties - renters who can't make their monthly installments have a quick solution to keep paying, while those performer sambun bay often those who have difficulty getting a car loan or are blacklisted by financial institutions. Furthermore, the easy process of getting a car and not having to spend a fortune to buy it makes it attractive to those looking for an easy deal. Azman says that while it's difficult for financial institutions to track down a vehicle if the pay-as-you-go party fails to pay the vehicle's monthly installments, the lessee will be responsible for that behavior, including action. legal and blacklisted. “In addition, a lessee who is found to have sold his or her vehicle while the lease purchase agreement is still in effect can be fined up to RM30,000 or three years in prison, or both, under Section 38 of the Lease. The Purchase Act of 1967,” he said, adding that tenants were also at risk of receiving summons for traffic violations he didn't commit. For those who continue on the loan, the car is not yours and will never be yours. As before, our advice to those who are thinking of pawning their car or “owning” a fancy ride under the price sambun bay the plan remains the same - don't do it. It is illegal and not worth the trouble, even if it seems easy at first glance.