Saturday, July 22, 2006

Buyer Beware - 21st July 2006

Buyer Beware

A weekly look at what to watch out for in the world of consumers. Figures, case study and tips come from the Consumers Association of Singapore (Case).

The world of cars

116 No. of cases filed
(January to December 2005)

Top complaint

1. Misrepresentation

  • CASE STUDY

    A car buyer paid a deposit on a new car and was assured by the sales staff verbally that a hire-purchase loan would definitely be approved. However, the loan application was rejected.

    The vendor then told the buyer that he had to top up with cash or the transaction would be cancelled and he would lose his deposit. The buyer went to Case to get back his deposit.

  • OUTCOME

    Case wrote to the car vendor without success. Case then proposed mediation which was successful.

  • CONSUMER TIPS

    1. Put down important terms in writing to prevent potential disputes.

    2. Know the latest laws applicable. Hire-purchase loans taken after Nov1, 2004, are subject to the amended Hire-Purchase Act. Check out the Ministry of Trade and Industry web-page of frequently asked questions at http://app.mti.gov.sg/default.asp?id =566.

    3. The Association of Banks in Singapore (ABS) has a publications webpage, including a guide to car financing (http://www.abs.org.sg/publications.htm).

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