Unscrupulous repossession syndicates are taking advantage of police reports to artificially increase the prices of repossessed vehicles and provide potential buyers with a false sense of security regarding legal matters. This unethical practice was uncovered through various advertisements on social media platforms where repossessed vehicles were being offered for sale.
According to NST, these ads highlighted that the vehicles came with police reports, suggesting that they could be used without encountering any issues with law enforcement.
Typically, repossessors file a standard report with the police when attempting to recover vehicles from loan defaulters. This report primarily serves as a reference for the bank and includes essential details like the time and location of repossession, as well as the storage facility where the vehicle will be kept. However, these syndicates have devised a deceptive tactic, coercing loan defaulters into filing reports using a customized template.
These manipulated reports contain clauses that waive the defaulter’s control over the vehicle and absolve them of any responsibility for future traffic summonses. The intent behind these clauses is to mislead potential buyers into believing that they can use the vehicle without repercussions from law enforcement. In some instances, these reports also include the police logo, adding a veneer of legitimacy and trustworthiness to the transaction.
Moreover, buyers of such repossessed vehicles, often referred to as “kereta jalan terus” (directly driven cars), “kereta piang,” or “kereta logo,” are provided with copies of the vehicle’s registration and the owner’s identification card. These documents, whether in original or carbon copy, are presented to buyers to further bolster the impression of a legitimate transaction.
The consequence of this fraudulent practice is a significant inflation of vehicle prices. Vehicles without proper documentation may be sold at lower prices, but with the addition of these manipulated police reports and related documents, the perceived value of the vehicle dramatically increases. This artificially inflated value can lead to higher sale prices, sometimes even double the initial price without the manipulated documents.
To ensure a safe and legal transaction, potential buyers are strongly advised to exercise caution, thoroughly verify the documentation provided, and follow proper legal processes when purchasing a vehicle. It’s essential to prioritise legal compliance and transparency to avoid potential legal troubles and financial losses.
