I do not recommend that anyone get into the situation where you default on your car loan bad enough for them to want to come repossess it, but for those that somehow get into the situation, the following is the Association of Hire Purchase Companies Malaysia’s Code of Ethics on Repossession.

I have a feeling that in these trying times, those that are barely surviving their Kancil installments and fuel bills may find this document handy.

  1. As far as possible the number of authorized repossessors must be minimized unless circumstances warrant any additional assistance.
  2. Repossessors should only gain entry into premises with the knowledge and consent of the occupant.
  3. Repossessors should be well mannered and dress decently. They should ensure the practice of professionalism and dignity in carrying out their work.
  4. The use of strong arm tactics of any kind is strictly prohibited in the performance of their work.
  5. At the time of repossession, the repossessors should give a standard notice to the hirer informing him of the following:
    • The address and telephone number of the finance company and the authorized officers he/she can contact immediately to resolve any problems.
    • The repossessors must give a reasonable time to the hirer to inspect the vehicle and remove his personal items and belongings.
  6. As far as possible repossession should be undertaken in the presence of the hirer or any person authorized to that car.
  7. Repossessors should at all times act in accordance with the laws and regulations in the performance of their work.
  8. All repossessors should be given and briefed on the Code of Ethics On Repossession and abide by its terms. They should also observe any other Code of Ethics introduced by the Association of Hire Purchase Companies Malaysia, the Association of Finance Companies Malaysia and the Ministry of Domestic Trade and Consumer Affairs from time to time.

In a perfect world everyone would adhere to this Code of Ethics, but then again in a perfect world people would also pay their hire purchase loans diligently.