Two interim strategies to protect consumer rights before Lemon Law is finalised
The Ministry of Domestic Trade and Cost of Living has rolled out two interim strategies to protect consumers regarding the right to claim compensation, for motor vehicle purchases, before a new legal framework related to the Lemon Law is finalised.
Its minister, Datuk Armizan Mohd Ali said the strategies include establishing a standard operating procedure to process applications for consent letters from consumers, in addition to requesting banking institutions to set up a dedicated internal unit to receive and process any such applications through a collaboration with Bank Negara Malaysia and banking institutions.
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Its minister, Datuk Armizan Mohd Ali said the strategies include establishing a standard operating procedure to process applications for consent letters from consumers, in addition to requesting banking institutions to set up a dedicated internal unit to receive and process any such applications through a collaboration with Bank Negara Malaysia and banking institutions.
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00APDN is making an effort to study the legislation related to Lemon Law in our country.
00:19I have announced previously that the study should be completed in September.
00:29Now, we are in October.
00:34However, I would like to inform you today that one is a study.
00:40After the study is completed, it will go through various processes.
00:46This is because before we move forward with the legislation,
00:57the process may be until next year.
01:01So, in this period, we cannot let it be like that.
01:08Therefore, there are two interim steps that have been introduced by KPDN starting this year.
01:16One of the interim steps that I would like to announce today,
01:23the status of progress is related to strategic cooperation between KPDN and the Bank of Malaysia
01:34as well as the banking industry to help users who have filed a complaint at TTPM
01:46which previously faced the issue of consent letter.
01:50So, this year, KPDN will start strategic cooperation with the Bank of Malaysia
01:57to create a standard consent letter to facilitate our users.
02:04Alhamdulillah, I would like to inform you that on September 2, 2024,
02:11the Bank of Malaysia has issued an order to the Bank and other financial institutions
02:21to issue an SOP, Standard Procedure,
02:28to enable users to request and obtain a consent letter from this banking institution.
02:39The Bank of Malaysia has given a deadline of three months,
02:47which is as late as December 3, to all banks and financial institutions to issue the SOP.
02:57Among other things, it is to create a special internal unit to facilitate users to make the request.
03:09So, this is one of the developments of the interim solution,
03:16while we are waiting to finish the Lemon Draw.
03:22The second interim solution is initiated by the KPDN.
03:29We have set up a special audit team involving the KPDN, the authorities, industry and buyers.
03:44If there is an issue related to the purchase of this vehicle,
03:52the authorities will act as facilitators between the two parties to resolve the related issues.
04:03Indeed, we have not been able to create a conducive ecosystem
04:11and improve the laws related to the Lemon Draw in our country.
04:17However, the KPDN and the government have taken proactive steps through these two interim solutions.
04:24We have received progress related to the Lemon Law from the team that we appointed.
04:37However, we at the KPDN ask for additional research components to be seen.
04:45This is because the authorities have decided to give an additional two months,
04:54until November, to the team,
04:57to see if there are any new proposals from the industry,
05:06as well as proposals from SHOR to establish an embassy and so on.
05:14So, this is a new component that requires additional research from the team that has been appointed.
05:21So, we will give them time until November,
05:26for them to present a full report to the KPDN.
05:35So far, we hope that the users,
05:40even though there is no conclusion about the Lemon Law,
05:44but we hope that it will show two levels.
05:50First, it can also be presented to the authorities,
05:54through the Special Investigation Team that we have established,
06:00or it can also go straight to the Malaysian Customs Tribunal under the KPDN.