Govt Rolls Out 2 Interim Plans Before Lemon Law Finalised

Prior to the finalization of a new legal framework for lemon law, the minister of domestic trade and cost of living (KPDN), Armizan Ali announced two interim strategies to safeguard consumers regarding the right to claim compensation, particularly for motor vehicle purchases.

One of the strategies is to request that banks and financial institutions create specialized internal units to handle consumer applications for consent letters, and to establish standard operating procedures (SOPs) for processing those applications.

Bank Negara Malaysia (BNM) has requested banks and other financial institutions to set up Standard Operating Procedures (SOPs) that will enable customers to apply for consent letters, which should be implemented by December 3, in order to guarantee that consumers have access to just and efficient solutions prior to the implementation of the lemon law.
“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 had problems,” Armizan said.

“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 added.
In June of this year, KPDN announced that the ministry intends to create a more thorough framework for consumer protection by either amending current laws pertaining to defective vehicles or introducing new frameworks related to lemon laws in March of the following year.
There have previously been calls for the implementation of a "lemon law," which would have required the manufacturer to fully repair any cars under warranty that are discovered to be unsafe or defective. The buyer may be eligible for a refund or a replacement if the car is found to be irreparable following a sufficient number of repair attempts.