JEDDAH: People who use installment scheme to purchase vehicles have complained their cars get damaged when they get repossessed. Some are calling on authorities to oversee the “repo” process and ensure vehicles are properly stored until the owners can catch up on their payments.
Murad Mahmoud said he recently had his car repossessed. When he went to pay the money due, he discovered the car had been damaged either by the tow-truck agent or at the garage where the car was stored.
“I went to reclaim the car and I found it had suffered some damages,” said Mahmoud. “A mechanic told me the insurance company would not cover the repair cost.”
The Jeddah Chamber of Commerce and Industry (JCCI) claims the entire system of vehicle financing needs to be reformed to increase consumer protections. The JCCI claims that financing companies are choosing to sell vehicles after a number of late payments even after buyers catch up.
“The regulations governing vehicle financing is prejudiced against consumers,” said Saeed Al-Basami, deputy chair of the Automobiles Committee at the JCCI. “They should be reviewed and the rights of the buyers should be protected. The current system is unreasonable because the company, for instance, is empowered to sell an installment buyer’s car if he defaulted a few installments even after paying several installments.”
Regarding the complaints customers have about how their vehicles are treated when they get repossessed, Al-Basami said the 30 impound lots in Jeddah have only recently been ordered by authorities to adhere to standards, including a minimum size (10,000 square meters); adequate lighting and anti-theft controls, direct linkage to the nearest police precinct; on-site administrative offices; a minimum of five tow trucks; and at least one truck able to carry five vehicles.
For their part, owners of impound lots say they have a backlog of unclaimed vehicles.
One garage owner said he needs the police to deal with the growing number of unclaimed vehicles that are occupying space in his lot. “Only then we can comply with the new rules,” he said.
Jeddah vehicle owners that have their cars towed pay SR75 for the service. They are charged SR400 for accident-related assessments and SR100 a month for the space at the lot.
