EVEN VERY WEALTHY COUNTRIES HAVE REPOMEN
Bandar Seri Begawan - The banking industry in Brunei said that repossessed cars, which showed an increase towards the end of 2005 and in early 2006, may have reached its peak and started to decrease in recent months.
"Overall repossessions form a very tiny percentage of total portfolios" a spokesperson for a leading bank told the Bulletin. The spokesperson added that the main reason leading to repossession is the lack of ability to make repayments.
"This is partly due to the hirer's inability to meet financial obligations or as a result of hirers selling their vehicles to third parties - without the consent of the finance company - and the third parties fail to honour their commitment to the hirers."
For customers facing the possibility of their cars being repossessed, the spokesperson said, "All customers who have genuine repayment difficulties will be assisted through reasonable extensions.
"There is also an opportunity to reschedule loans if hirers agree to a detailed examination of means and meet the assessment criteria specified by the bank. This is necessary to avoid a deferment of the problem and to ensure that a sustainable long-term solution is reached."
The spokesperson added that the response from Bruneians on cars for sale by tender, as advertised in newspapers, has been overwhelming.
The general manager of another bank refused to comment on the matter, citing sensitivities involved in the issue. Meanwhile,' a bank executive involved in car repossession said some car owners try to hide their cars to avoid repossession.
"In one case, a car that was about to be repossessed was found in Miri and was intended for sale in the neighbouring state," he said.
He added that a majority of those whose cars are repossessed had been sacked from a job or whose work contracts had expired, such as security personnel. "It is not only cars that are repossessed. I have come across a mini motor that had been repossessed," the bank executive said.
He said customers will have to bear all charges for keeping cars at the yard, specifically at two locations in Gadong. He said some finance companies consult the owner on how much he or she can afford to pay before repossessing the car.
"In such instances, the finance company has to monitor the kind of instalment on a case-to-case basis," he added.
An observer said that as the salary increases, so does daily expenditure.
This in turn leads to individuals finding it difficult to settle car instalments.
He also laid responsibility on banks' easy access to car financing, like quick approval schemes and 100 per cent car financing with no deposit that led customers to paying higher monthly instalments.
"Overall repossessions form a very tiny percentage of total portfolios" a spokesperson for a leading bank told the Bulletin. The spokesperson added that the main reason leading to repossession is the lack of ability to make repayments.
"This is partly due to the hirer's inability to meet financial obligations or as a result of hirers selling their vehicles to third parties - without the consent of the finance company - and the third parties fail to honour their commitment to the hirers."
For customers facing the possibility of their cars being repossessed, the spokesperson said, "All customers who have genuine repayment difficulties will be assisted through reasonable extensions.
"There is also an opportunity to reschedule loans if hirers agree to a detailed examination of means and meet the assessment criteria specified by the bank. This is necessary to avoid a deferment of the problem and to ensure that a sustainable long-term solution is reached."
The spokesperson added that the response from Bruneians on cars for sale by tender, as advertised in newspapers, has been overwhelming.
The general manager of another bank refused to comment on the matter, citing sensitivities involved in the issue. Meanwhile,' a bank executive involved in car repossession said some car owners try to hide their cars to avoid repossession.
"In one case, a car that was about to be repossessed was found in Miri and was intended for sale in the neighbouring state," he said.
He added that a majority of those whose cars are repossessed had been sacked from a job or whose work contracts had expired, such as security personnel. "It is not only cars that are repossessed. I have come across a mini motor that had been repossessed," the bank executive said.
He said customers will have to bear all charges for keeping cars at the yard, specifically at two locations in Gadong. He said some finance companies consult the owner on how much he or she can afford to pay before repossessing the car.
"In such instances, the finance company has to monitor the kind of instalment on a case-to-case basis," he added.
An observer said that as the salary increases, so does daily expenditure.
This in turn leads to individuals finding it difficult to settle car instalments.
He also laid responsibility on banks' easy access to car financing, like quick approval schemes and 100 per cent car financing with no deposit that led customers to paying higher monthly instalments.
posted by Dave at 10:43 AM
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