The ministry of domestic trade and cost of living (KPDN) has introduced two interim strategies aimed at protecting consumers regarding the right to claim compensation for defective or faulty products – particularly for motor vehicle purchases – before a new legal framework for the proposed lemon law is finalised, Bernama reports.
According to KPDN minister Armizan Mohd Ali, these measures are establishing SOPs to process applications from consumers for consent letters from banks and financial institutions, and requesting banking institutions to set up dedicated internal units to receive and process such applications.
“Bank Negara Malaysia (BNM) has already issued a directive asking banks and other financial institutions to establish SOPs to allow consumers to apply for consent letters. The consent letter can be used by consumers to file a claim for compensation through the tribunal for consumer claims (TTPM) if the vehicles they bought have problems,” he said.
He said these initiatives, which BNM has instructed banking institutions to implement by December 3, will ensure consumers have access to fair and effective solutions before the lemon law is implemented. Earlier this year, KPDN had said it was looking at establishing an ombudsman to resolve vehicle complaint disputes.
Armizan said that from January to August this year, the ministry received 114 compensation claims for vehicles. “A total of 187 complaints involving used vehicles were filed at TTPM. Another 16 complaints have been referred to a special negotiation team from January to September this year,” he said.
The ministry is currently studying the implementation and enforcement of legislation related to the lemon law, which provides redress rights to buyers of motor vehicles and other consumer goods to obtain remedies for products that repeatedly malfunction and fail to meet quality and performance standards. Remedies that consumers or buyers can claim under the law include repairs, replacement, price reductions or refunds.
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Fully agreed. Presently most complaints hit a brick wall due to motor vehicle under hire~purchase belongs to bank or finance institution thus the user complaint is redundant powerless….
Can we have a lemon law to dispose this lemon failed gomen too?
This overdue lemon law should have been passed from day one when Proton was set up.
It took 4 decades for the lawmakers to finally wake up after the kenching manis Perodua bezza fiasco.
Anyway,better late than nothing done at all.
What talk you? The original proton saga was indestructible. Lemon law is for Hongda steering wheels & omoda 5 rear axles
The Ministry of Domestic Trade and Cost of Living (KPDN) in Malaysia has initiated two interim measures to protect consumers as the country prepares to implement a formal “lemon law,” particularly in the automotive sector. These measures, according to KPDN minister Armizan Mohd Ali, focus on two main areas:
1) Establishing Standard Operating Procedures (SOPs): These SOPs will facilitate consumers in applying for consent letters from banks and financial institutions. These letters are essential for consumers to file claims for compensation with the Tribunal for Consumer Claims (TTPM) if they encounter defects in vehicles they purchase.
2) Dedicated Units in Financial Institutions: Banking institutions are being directed by Bank Negara Malaysia (BNM) to set up specialized internal units to process consumer applications for consent letters. These measures are set to be in place by December 3, 2024.
These steps are designed to offer consumers fair and effective recourse for defective vehicles even before the full lemon law legislation is implemented, which is expected next year. Additionally, KPDN is considering establishing a special ombudsman to mediate disputes between vehicle buyers and sellers, aiming to resolve issues without the need for lengthy court processes.
The lemon law itself, once in place, would provide remedies such as repairs, replacement, price reductions, or refunds for vehicles and other consumer goods that fail to meet performance standards after repeated repair attempts. Malaysia is looking into various related laws such as the Contract Act 1950, Sale of Goods Act 1957, and Hire Purchase Act 1967 to ensure proper implementation of the lemon law.
Countries like the United States, Singapore, and Australia have already implemented similar laws to protect consumers from defective products.
Please include those outstanding claims from insurance company due to accident claims, some of them takes years to propers payment, seem like not willing to compensate to customers
Finally ministry listing to rakyat…
Applaud the initiative. Please keep it simple & effective.
Let’s pray no cartel plays us out with the fine prints.
Haha so many saw hai buy lowya ploton guli and pro2 some more complain for what. You don’t want limau buy Japanese car like me no complain. I sell use car 7 years no complain from my customer Japanese car. Come visit Kobe Motor if you passing by Bukit Mertajam.